Correlation Between Industrial and Beijing Scitop
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By analyzing existing cross correlation between Industrial and Commercial and Beijing Scitop Bio, you can compare the effects of market volatilities on Industrial and Beijing Scitop 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 Beijing Scitop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Beijing Scitop.
Diversification Opportunities for Industrial and Beijing Scitop
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Beijing is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Beijing Scitop Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Scitop Bio 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 Beijing Scitop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Scitop Bio has no effect on the direction of Industrial i.e., Industrial and Beijing Scitop go up and down completely randomly.
Pair Corralation between Industrial and Beijing Scitop
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.45 times more return on investment than Beijing Scitop. However, Industrial and Commercial is 2.21 times less risky than Beijing Scitop. It trades about 0.09 of its potential returns per unit of risk. Beijing Scitop Bio is currently generating about 0.01 per unit of risk. If you would invest 399.00 in Industrial and Commercial on September 14, 2024 and sell it today you would earn a total of 243.00 from holding Industrial and Commercial or generate 60.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Industrial and Commercial vs. Beijing Scitop Bio
Performance |
| Timeline |
| Industrial and Commercial |
| Beijing Scitop Bio |
Industrial and Beijing Scitop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Beijing Scitop
The main advantage of trading using opposite Industrial and Beijing Scitop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Beijing Scitop 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 Beijing Scitop will offset losses from the drop in Beijing Scitop's long position.| Industrial vs. Allmed Medical Products | Industrial vs. Blue Sail Medical | Industrial vs. Yingde Greatchem Chemicals | Industrial vs. Zhongzhu Medical Holdings |
| Beijing Scitop vs. Industrial and Commercial | Beijing Scitop vs. China Construction Bank | Beijing Scitop vs. Bank of China | Beijing Scitop vs. Agricultural Bank of |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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