Correlation Between Industrial and Hengerda New
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By analyzing existing cross correlation between Industrial and Commercial and Hengerda New Materials, you can compare the effects of market volatilities on Industrial and Hengerda New 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 Hengerda New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Hengerda New.
Diversification Opportunities for Industrial and Hengerda New
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Hengerda is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Hengerda New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengerda New Materials 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 Hengerda New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengerda New Materials has no effect on the direction of Industrial i.e., Industrial and Hengerda New go up and down completely randomly.
Pair Corralation between Industrial and Hengerda New
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.34 times more return on investment than Hengerda New. However, Industrial and Commercial is 2.97 times less risky than Hengerda New. It trades about 0.09 of its potential returns per unit of risk. Hengerda New Materials is currently generating about 0.0 per unit of risk. If you would invest 458.00 in Industrial and Commercial on September 12, 2024 and sell it today you would earn a total of 184.00 from holding Industrial and Commercial or generate 40.17% 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. Hengerda New Materials
Performance |
| Timeline |
| Industrial and Commercial |
| Hengerda New Materials |
Industrial and Hengerda New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Hengerda New
The main advantage of trading using opposite Industrial and Hengerda New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Hengerda New 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 Hengerda New will offset losses from the drop in Hengerda New's long position.| Industrial vs. Eastroc Beverage Group | Industrial vs. China Publishing Media | Industrial vs. Inly Media Co | Industrial vs. Beijing Sanyuan Foods |
| Hengerda New vs. Agricultural Bank of | Hengerda New vs. Industrial and Commercial | Hengerda New vs. Bank of China | Hengerda New 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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