Correlation Between Industrial and Chengdu B
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By analyzing existing cross correlation between Industrial and Commercial and Chengdu B ray Media, you can compare the effects of market volatilities on Industrial and Chengdu B 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 Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Chengdu B.
Diversification Opportunities for Industrial and Chengdu B
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Industrial and Chengdu is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of Industrial i.e., Industrial and Chengdu B go up and down completely randomly.
Pair Corralation between Industrial and Chengdu B
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.42 times more return on investment than Chengdu B. However, Industrial and Commercial is 2.38 times less risky than Chengdu B. It trades about 0.09 of its potential returns per unit of risk. Chengdu B ray Media is currently generating about -0.01 per unit of risk. If you would invest 473.00 in Industrial and Commercial on September 2, 2024 and sell it today you would earn a total of 142.00 from holding Industrial and Commercial or generate 30.02% 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. Chengdu B ray Media
Performance |
| Timeline |
| Industrial and Commercial |
| Chengdu B ray |
Industrial and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Chengdu B
The main advantage of trading using opposite Industrial and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Chengdu B 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 Chengdu B will offset losses from the drop in Chengdu B's long position.| Industrial vs. Longjian Road Bridge | Industrial vs. Chongqing Road Bridge | Industrial vs. FSPG Hi Tech Co | Industrial vs. Broadex Technologies Co |
| Chengdu B vs. Kunshan Guoli Electronic | Chengdu B vs. Chison Medical Technologies | Chengdu B vs. Xian International Medical | Chengdu B vs. Shenzhen Glory Medical |
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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