Correlation Between Industrial and Chengdu Xinzhu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Industrial and Commercial and Chengdu Xinzhu RoadBridge, you can compare the effects of market volatilities on Industrial and Chengdu Xinzhu 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 Chengdu Xinzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Chengdu Xinzhu.
Diversification Opportunities for Industrial and Chengdu Xinzhu
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Industrial and Chengdu is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Chengdu Xinzhu RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xinzhu RoadBridge 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 Chengdu Xinzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xinzhu RoadBridge has no effect on the direction of Industrial i.e., Industrial and Chengdu Xinzhu go up and down completely randomly.
Pair Corralation between Industrial and Chengdu Xinzhu
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.33 times more return on investment than Chengdu Xinzhu. However, Industrial and Commercial is 3.0 times less risky than Chengdu Xinzhu. It trades about 0.22 of its potential returns per unit of risk. Chengdu Xinzhu RoadBridge is currently generating about -0.04 per unit of risk. If you would invest 688.00 in Industrial and Commercial on January 27, 2025 and sell it today you would earn a total of 33.00 from holding Industrial and Commercial or generate 4.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Chengdu Xinzhu RoadBridge
Performance |
| Timeline |
| Industrial and Commercial |
| Chengdu Xinzhu RoadBridge |
Industrial and Chengdu Xinzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Chengdu Xinzhu
The main advantage of trading using opposite Industrial and Chengdu Xinzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Chengdu Xinzhu 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 Chengdu Xinzhu will offset losses from the drop in Chengdu Xinzhu's long position.| Industrial vs. Union Semiconductor Co | Industrial vs. Youngy Health Co | Industrial vs. Ingenic Semiconductor | Industrial vs. Lotus Health Group |
| Chengdu Xinzhu vs. Shaanxi Construction Machinery | Chengdu Xinzhu vs. Lutian Machinery Co | Chengdu Xinzhu vs. Jinhe Biotechnology Co | Chengdu Xinzhu vs. Ningbo MedicalSystem Biotechnology |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stocks Directory Find actively traded stocks across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |