Correlation Between Industrial and Sunny Loan
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By analyzing existing cross correlation between Industrial and Commercial and Sunny Loan Top, you can compare the effects of market volatilities on Industrial and Sunny Loan 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 Sunny Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Sunny Loan.
Diversification Opportunities for Industrial and Sunny Loan
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Industrial and Sunny is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Sunny Loan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Loan Top 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 Sunny Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Loan Top has no effect on the direction of Industrial i.e., Industrial and Sunny Loan go up and down completely randomly.
Pair Corralation between Industrial and Sunny Loan
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.3 times more return on investment than Sunny Loan. However, Industrial and Commercial is 3.36 times less risky than Sunny Loan. It trades about 0.09 of its potential returns per unit of risk. Sunny Loan Top is currently generating about -0.11 per unit of risk. If you would invest 604.00 in Industrial and Commercial on September 1, 2024 and sell it today you would earn a total of 11.00 from holding Industrial and Commercial or generate 1.82% 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. Sunny Loan Top
Performance |
| Timeline |
| Industrial and Commercial |
| Sunny Loan Top |
Industrial and Sunny Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Sunny Loan
The main advantage of trading using opposite Industrial and Sunny Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Sunny Loan 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 Sunny Loan will offset losses from the drop in Sunny Loan's long position.| Industrial vs. Fiberhome Telecommunication Technologies | Industrial vs. Chengdu Spaceon Electronics | Industrial vs. Zhongtong Guomai Communication | Industrial vs. Railway Signal Communication |
| Sunny Loan vs. Elite Color Environmental | Sunny Loan vs. Shenzhen MYS Environmental | Sunny Loan vs. Chengtun Mining Group | Sunny Loan vs. Ye Chiu Metal |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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