Correlation Between Industrial and Anshan Senyuan
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By analyzing existing cross correlation between Industrial and Commercial and Anshan Senyuan Road, you can compare the effects of market volatilities on Industrial and Anshan Senyuan 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 Anshan Senyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Anshan Senyuan.
Diversification Opportunities for Industrial and Anshan Senyuan
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Industrial and Anshan is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Anshan Senyuan Road in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anshan Senyuan Road 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 Anshan Senyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anshan Senyuan Road has no effect on the direction of Industrial i.e., Industrial and Anshan Senyuan go up and down completely randomly.
Pair Corralation between Industrial and Anshan Senyuan
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.35 times more return on investment than Anshan Senyuan. However, Industrial and Commercial is 2.88 times less risky than Anshan Senyuan. It trades about 0.13 of its potential returns per unit of risk. Anshan Senyuan Road is currently generating about -0.22 per unit of risk. If you would invest 607.00 in Industrial and Commercial on October 26, 2024 and sell it today you would earn a total of 59.00 from holding Industrial and Commercial or generate 9.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Anshan Senyuan Road
Performance |
| Timeline |
| Industrial and Commercial |
| Anshan Senyuan Road |
Industrial and Anshan Senyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Anshan Senyuan
The main advantage of trading using opposite Industrial and Anshan Senyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Anshan Senyuan 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 Anshan Senyuan will offset losses from the drop in Anshan Senyuan's long position.| Industrial vs. Sino Platinum Metals Co | Industrial vs. Offshore Oil Engineering | Industrial vs. Heilongjiang Transport Development | Industrial vs. Qingdao Haier Biomedical |
| Anshan Senyuan vs. Industrial and Commercial | Anshan Senyuan vs. Agricultural Bank of | Anshan Senyuan vs. China Construction Bank | Anshan Senyuan vs. Bank of China |
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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