Correlation Between Industrial and Sinotrans
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By analyzing existing cross correlation between Industrial and Commercial and Sinotrans Ltd Class, you can compare the effects of market volatilities on Industrial and Sinotrans 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 Sinotrans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Sinotrans.
Diversification Opportunities for Industrial and Sinotrans
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Sinotrans is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Sinotrans Ltd Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinotrans Class 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 Sinotrans. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinotrans Class has no effect on the direction of Industrial i.e., Industrial and Sinotrans go up and down completely randomly.
Pair Corralation between Industrial and Sinotrans
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.78 times more return on investment than Sinotrans. However, Industrial and Commercial is 1.28 times less risky than Sinotrans. It trades about 0.1 of its potential returns per unit of risk. Sinotrans Ltd Class is currently generating about -0.01 per unit of risk. If you would invest 582.00 in Industrial and Commercial on September 28, 2024 and sell it today you would earn a total of 111.00 from holding Industrial and Commercial or generate 19.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Sinotrans Ltd Class
Performance |
| Timeline |
| Industrial and Commercial |
| Sinotrans Class |
Industrial and Sinotrans Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Sinotrans
The main advantage of trading using opposite Industrial and Sinotrans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Sinotrans 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 Sinotrans will offset losses from the drop in Sinotrans' long position.| Industrial vs. Agricultural Bank of | Industrial vs. GRG Banking Equipment | Industrial vs. Eyebright Medical Technology | Industrial vs. Postal Savings Bank |
| Sinotrans vs. Ming Yang Smart | Sinotrans vs. 159681 | Sinotrans vs. 159005 | Sinotrans vs. Loctek Ergonomic Technology |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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