Correlation Between Industrial and Anhui Xinhua
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By analyzing existing cross correlation between Industrial and Commercial and Anhui Xinhua Media, you can compare the effects of market volatilities on Industrial and Anhui Xinhua 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 Anhui Xinhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Anhui Xinhua.
Diversification Opportunities for Industrial and Anhui Xinhua
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Industrial and Anhui is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Anhui Xinhua Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Xinhua Media 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 Anhui Xinhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Xinhua Media has no effect on the direction of Industrial i.e., Industrial and Anhui Xinhua go up and down completely randomly.
Pair Corralation between Industrial and Anhui Xinhua
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.58 times more return on investment than Anhui Xinhua. However, Industrial and Commercial is 1.73 times less risky than Anhui Xinhua. It trades about 0.43 of its potential returns per unit of risk. Anhui Xinhua Media is currently generating about 0.08 per unit of risk. If you would invest 620.00 in Industrial and Commercial on September 28, 2024 and sell it today you would earn a total of 73.00 from holding Industrial and Commercial or generate 11.77% 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. Anhui Xinhua Media
Performance |
Timeline |
Industrial and Commercial |
Anhui Xinhua Media |
Industrial and Anhui Xinhua Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Industrial and Anhui Xinhua
The main advantage of trading using opposite Industrial and Anhui Xinhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Anhui Xinhua 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 Anhui Xinhua will offset losses from the drop in Anhui Xinhua's long position.Industrial vs. Agricultural Bank of | Industrial vs. GRG Banking Equipment | Industrial vs. Eyebright Medical Technology | Industrial vs. Postal Savings Bank |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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