Correlation Between Industrial and Guangdong Xiongsu
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By analyzing existing cross correlation between Industrial and Commercial and Guangdong Xiongsu Technology, you can compare the effects of market volatilities on Industrial and Guangdong Xiongsu 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 Guangdong Xiongsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Guangdong Xiongsu.
Diversification Opportunities for Industrial and Guangdong Xiongsu
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Industrial and Guangdong is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Guangdong Xiongsu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Xiongsu 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 Guangdong Xiongsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Xiongsu has no effect on the direction of Industrial i.e., Industrial and Guangdong Xiongsu go up and down completely randomly.
Pair Corralation between Industrial and Guangdong Xiongsu
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.3 times more return on investment than Guangdong Xiongsu. However, Industrial and Commercial is 3.36 times less risky than Guangdong Xiongsu. It trades about 0.09 of its potential returns per unit of risk. Guangdong Xiongsu Technology is currently generating about -0.02 per unit of risk. If you would invest 604.00 in Industrial and Commercial on September 1, 2024 and sell it today you would earn a total of 11.00 from holding Industrial and Commercial or generate 1.82% 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. Guangdong Xiongsu Technology
Performance |
| Timeline |
| Industrial and Commercial |
| Guangdong Xiongsu |
Industrial and Guangdong Xiongsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Guangdong Xiongsu
The main advantage of trading using opposite Industrial and Guangdong Xiongsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Guangdong Xiongsu 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 Guangdong Xiongsu will offset losses from the drop in Guangdong Xiongsu's long position.| Industrial vs. Fiberhome Telecommunication Technologies | Industrial vs. Chengdu Spaceon Electronics | Industrial vs. Zhongtong Guomai Communication | Industrial vs. Railway Signal Communication |
| Guangdong Xiongsu vs. Industrial and Commercial | Guangdong Xiongsu vs. Agricultural Bank of | Guangdong Xiongsu vs. China Construction Bank | Guangdong Xiongsu 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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