Correlation Between Industrial and Shenzhen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Industrial and Commercial and Shenzhen AV Display Co, you can compare the effects of market volatilities on Industrial and Shenzhen 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Shenzhen.
Diversification Opportunities for Industrial and Shenzhen
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Shenzhen is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Shenzhen AV Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen AV Display 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen AV Display has no effect on the direction of Industrial i.e., Industrial and Shenzhen go up and down completely randomly.
Pair Corralation between Industrial and Shenzhen
Assuming the 90 days trading horizon Industrial is expected to generate 1.08 times less return on investment than Shenzhen. But when comparing it to its historical volatility, Industrial and Commercial is 3.02 times less risky than Shenzhen. It trades about 0.09 of its potential returns per unit of risk. Shenzhen AV Display Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,678 in Shenzhen AV Display Co on September 14, 2024 and sell it today you would earn a total of 759.00 from holding Shenzhen AV Display Co or generate 28.34% 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. Shenzhen AV Display Co
Performance |
| Timeline |
| Industrial and Commercial |
| Shenzhen AV Display |
Industrial and Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Shenzhen
The main advantage of trading using opposite Industrial and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Shenzhen 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 will offset losses from the drop in Shenzhen's long position.| Industrial vs. Allmed Medical Products | Industrial vs. Blue Sail Medical | Industrial vs. Yingde Greatchem Chemicals | Industrial vs. Zhongzhu Medical Holdings |
| Shenzhen vs. Changjiang Publishing Media | Shenzhen vs. Shanghai Action Education | Shenzhen vs. Eastern Communications Co | Shenzhen vs. Xinjiang Communications Construction |
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.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |