Correlation Between Industrial and Shanghai Construction
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By analyzing existing cross correlation between Industrial and Commercial and Shanghai Construction Group, you can compare the effects of market volatilities on Industrial and Shanghai Construction 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 Shanghai Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Shanghai Construction.
Diversification Opportunities for Industrial and Shanghai Construction
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Industrial and Shanghai is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Shanghai Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Construction 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 Shanghai Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Construction has no effect on the direction of Industrial i.e., Industrial and Shanghai Construction go up and down completely randomly.
Pair Corralation between Industrial and Shanghai Construction
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.73 times more return on investment than Shanghai Construction. However, Industrial and Commercial is 1.36 times less risky than Shanghai Construction. It trades about 0.09 of its potential returns per unit of risk. Shanghai Construction Group is currently generating about 0.0 per unit of risk. If you would invest 402.00 in Industrial and Commercial on October 28, 2024 and sell it today you would earn a total of 265.00 from holding Industrial and Commercial or generate 65.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Shanghai Construction Group
Performance |
| Timeline |
| Industrial and Commercial |
| Shanghai Construction |
Industrial and Shanghai Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Shanghai Construction
The main advantage of trading using opposite Industrial and Shanghai Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Shanghai Construction 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 Shanghai Construction will offset losses from the drop in Shanghai Construction's long position.| Industrial vs. Dongfeng Automobile Co | Industrial vs. Bank of Communications | Industrial vs. Nanjing OLO Home | Industrial vs. Easyhome New Retail |
| Shanghai Construction vs. Industrial and Commercial | Shanghai Construction vs. China Construction Bank | Shanghai Construction vs. Agricultural Bank of | Shanghai Construction vs. Bank of China |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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