Correlation Between Industrial and Shanghai Shibei
Specify exactly 2 symbols:
By analyzing existing cross correlation between Industrial and Commercial and Shanghai Shibei Hi Tech, you can compare the effects of market volatilities on Industrial and Shanghai Shibei 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 Shibei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Shanghai Shibei.
Diversification Opportunities for Industrial and Shanghai Shibei
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Industrial and Shanghai is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Shanghai Shibei Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shibei Hi 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 Shibei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shibei Hi has no effect on the direction of Industrial i.e., Industrial and Shanghai Shibei go up and down completely randomly.
Pair Corralation between Industrial and Shanghai Shibei
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.59 times more return on investment than Shanghai Shibei. However, Industrial and Commercial is 1.71 times less risky than Shanghai Shibei. It trades about -0.08 of its potential returns per unit of risk. Shanghai Shibei Hi Tech is currently generating about -0.27 per unit of risk. If you would invest 670.00 in Industrial and Commercial on October 24, 2024 and sell it today you would lose (15.00) from holding Industrial and Commercial or give up 2.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Shanghai Shibei Hi Tech
Performance |
| Timeline |
| Industrial and Commercial |
| Shanghai Shibei Hi |
Industrial and Shanghai Shibei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Shanghai Shibei
The main advantage of trading using opposite Industrial and Shanghai Shibei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Shanghai Shibei 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 Shibei will offset losses from the drop in Shanghai Shibei's long position.| Industrial vs. Jilin OLED Material | Industrial vs. Nuode Investment Co | Industrial vs. Guangzhou Restaurants Group | Industrial vs. Konfoong Materials International |
| Shanghai Shibei vs. Industrial and Commercial | Shanghai Shibei vs. Agricultural Bank of | Shanghai Shibei vs. China Construction Bank | Shanghai Shibei 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |