Correlation Between Industrial and Xiamen CD
Specify exactly 2 symbols:
By analyzing existing cross correlation between Industrial and Commercial and Xiamen CD, you can compare the effects of market volatilities on Industrial and Xiamen CD 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 Xiamen CD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Xiamen CD.
Diversification Opportunities for Industrial and Xiamen CD
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Industrial and Xiamen is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Xiamen CD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen CD 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 Xiamen CD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen CD has no effect on the direction of Industrial i.e., Industrial and Xiamen CD go up and down completely randomly.
Pair Corralation between Industrial and Xiamen CD
Assuming the 90 days trading horizon Industrial is expected to generate 2.23 times less return on investment than Xiamen CD. But when comparing it to its historical volatility, Industrial and Commercial is 2.63 times less risky than Xiamen CD. It trades about 0.11 of its potential returns per unit of risk. Xiamen CD is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 935.00 in Xiamen CD on August 31, 2024 and sell it today you would earn a total of 45.00 from holding Xiamen CD or generate 4.81% 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. Xiamen CD
Performance |
| Timeline |
| Industrial and Commercial |
| Xiamen CD |
Industrial and Xiamen CD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Xiamen CD
The main advantage of trading using opposite Industrial and Xiamen CD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Xiamen CD 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 Xiamen CD will offset losses from the drop in Xiamen CD's long position.| Industrial vs. China Publishing Media | Industrial vs. Xiandai Investment Co | Industrial vs. Lander Sports Development | Industrial vs. Zhejiang Construction Investment |
| Xiamen CD vs. Cultural Investment Holdings | Xiamen CD vs. Gome Telecom Equipment | Xiamen CD vs. Bus Online Co | Xiamen CD vs. Holitech Technology Co |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |