Correlation Between Industrial and Shijiazhuang Tonhe
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By analyzing existing cross correlation between Industrial and Commercial and Shijiazhuang Tonhe Electronics, you can compare the effects of market volatilities on Industrial and Shijiazhuang Tonhe 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 Shijiazhuang Tonhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Shijiazhuang Tonhe.
Diversification Opportunities for Industrial and Shijiazhuang Tonhe
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Shijiazhuang is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Shijiazhuang Tonhe Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shijiazhuang Tonhe 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 Shijiazhuang Tonhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shijiazhuang Tonhe has no effect on the direction of Industrial i.e., Industrial and Shijiazhuang Tonhe go up and down completely randomly.
Pair Corralation between Industrial and Shijiazhuang Tonhe
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.36 times more return on investment than Shijiazhuang Tonhe. However, Industrial and Commercial is 2.75 times less risky than Shijiazhuang Tonhe. It trades about 0.24 of its potential returns per unit of risk. Shijiazhuang Tonhe Electronics is currently generating about 0.02 per unit of risk. If you would invest 600.00 in Industrial and Commercial on September 13, 2024 and sell it today you would earn a total of 31.00 from holding Industrial and Commercial or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Shijiazhuang Tonhe Electronics
Performance |
| Timeline |
| Industrial and Commercial |
| Shijiazhuang Tonhe |
Industrial and Shijiazhuang Tonhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Shijiazhuang Tonhe
The main advantage of trading using opposite Industrial and Shijiazhuang Tonhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Shijiazhuang Tonhe 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 Shijiazhuang Tonhe will offset losses from the drop in Shijiazhuang Tonhe's long position.| Industrial vs. Pengxin International Mining | Industrial vs. Qilu Bank Co | Industrial vs. Tibet Huayu Mining | Industrial vs. Chengtun Mining Group |
| Shijiazhuang Tonhe vs. Agricultural Bank of | Shijiazhuang Tonhe vs. Industrial and Commercial | Shijiazhuang Tonhe vs. Bank of China | Shijiazhuang Tonhe vs. PetroChina Co Ltd |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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