Correlation Between Industrial and Xizi Clean
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By analyzing existing cross correlation between Industrial and Commercial and Xizi Clean Energy, you can compare the effects of market volatilities on Industrial and Xizi Clean 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 Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Xizi Clean.
Diversification Opportunities for Industrial and Xizi Clean
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Industrial and Xizi is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy 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 Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of Industrial i.e., Industrial and Xizi Clean go up and down completely randomly.
Pair Corralation between Industrial and Xizi Clean
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.45 times more return on investment than Xizi Clean. However, Industrial and Commercial is 2.25 times less risky than Xizi Clean. It trades about 0.09 of its potential returns per unit of risk. Xizi Clean Energy is currently generating about 0.0 per unit of risk. If you would invest 478.00 in Industrial and Commercial on August 25, 2024 and sell it today you would earn a total of 127.00 from holding Industrial and Commercial or generate 26.57% 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. Xizi Clean Energy
Performance |
| Timeline |
| Industrial and Commercial |
| Xizi Clean Energy |
Industrial and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Xizi Clean
The main advantage of trading using opposite Industrial and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean's long position.| Industrial vs. Anhui Huilong Agricultural | Industrial vs. Agricultural Bank of | Industrial vs. Masterwork Machinery | Industrial vs. Huitong Construction Group |
| Xizi Clean vs. Biwin Storage Technology | Xizi Clean vs. PetroChina Co Ltd | Xizi Clean vs. Industrial and Commercial | Xizi Clean vs. China Construction Bank |
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.
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