Correlation Between Industrial and Shenzhen SDG
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By analyzing existing cross correlation between Industrial and Commercial and Shenzhen SDG Service, you can compare the effects of market volatilities on Industrial and Shenzhen SDG 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 Shenzhen SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Shenzhen SDG.
Diversification Opportunities for Industrial and Shenzhen SDG
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Industrial and Shenzhen is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Shenzhen SDG Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Service 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 Shenzhen SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Service has no effect on the direction of Industrial i.e., Industrial and Shenzhen SDG go up and down completely randomly.
Pair Corralation between Industrial and Shenzhen SDG
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.38 times more return on investment than Shenzhen SDG. However, Industrial and Commercial is 2.64 times less risky than Shenzhen SDG. It trades about 0.15 of its potential returns per unit of risk. Shenzhen SDG Service is currently generating about 0.02 per unit of risk. If you would invest 661.00 in Industrial and Commercial on November 6, 2024 and sell it today you would earn a total of 21.00 from holding Industrial and Commercial or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Shenzhen SDG Service
Performance |
| Timeline |
| Industrial and Commercial |
| Shenzhen SDG Service |
Industrial and Shenzhen SDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Shenzhen SDG
The main advantage of trading using opposite Industrial and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Shenzhen SDG 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 Shenzhen SDG will offset losses from the drop in Shenzhen SDG's long position.| Industrial vs. Qifeng New Material | Industrial vs. Hunan Investment Group | Industrial vs. Cultural Investment Holdings | Industrial vs. Zoje Resources Investment |
| Shenzhen SDG vs. Daoming OpticsChemical Co | Shenzhen SDG vs. Shantui Construction Machinery | Shenzhen SDG vs. Lier Chemical Co | Shenzhen SDG vs. Xinxiang Chemical Fiber |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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