Correlation Between Industrial and GRG Banking
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By analyzing existing cross correlation between Industrial and Commercial and GRG Banking Equipment, you can compare the effects of market volatilities on Industrial and GRG Banking and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Industrial with a short position of GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and GRG Banking.
Diversification Opportunities for Industrial and GRG Banking
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Industrial and GRG is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment and Industrial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Industrial and Commercial are associated (or correlated) with GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of Industrial i.e., Industrial and GRG Banking go up and down completely randomly.
Pair Corralation between Industrial and GRG Banking
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.32 times more return on investment than GRG Banking. However, Industrial and Commercial is 3.14 times less risky than GRG Banking. It trades about 0.07 of its potential returns per unit of risk. GRG Banking Equipment is currently generating about -0.02 per unit of risk. If you would invest 607.00 in Industrial and Commercial on August 29, 2024 and sell it today you would earn a total of 9.00 from holding Industrial and Commercial or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. GRG Banking Equipment
Performance |
| Timeline |
| Industrial and Commercial |
| GRG Banking Equipment |
Industrial and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and GRG Banking
The main advantage of trading using opposite Industrial and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, GRG Banking can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GRG Banking will offset losses from the drop in GRG Banking's long position.| Industrial vs. Allwin Telecommunication Co | Industrial vs. SUNSEA Telecommunications Co | Industrial vs. Guangzhou Haige Communications | Industrial vs. Nanjing Putian Telecommunications |
| GRG Banking vs. New Hope Dairy | GRG Banking vs. Shantou Wanshun Package | GRG Banking vs. Youyou Foods Co | GRG Banking vs. Omnijoi Media Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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