Correlation Between Industrial and China Publishing
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By analyzing existing cross correlation between Industrial and Commercial and China Publishing Media, you can compare the effects of market volatilities on Industrial and China Publishing 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 China Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and China Publishing.
Diversification Opportunities for Industrial and China Publishing
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Industrial and China is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Publishing 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 China Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of Industrial i.e., Industrial and China Publishing go up and down completely randomly.
Pair Corralation between Industrial and China Publishing
Assuming the 90 days trading horizon Industrial is expected to generate 11.12 times less return on investment than China Publishing. But when comparing it to its historical volatility, Industrial and Commercial is 5.16 times less risky than China Publishing. It trades about 0.09 of its potential returns per unit of risk. China Publishing Media is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 686.00 in China Publishing Media on September 1, 2024 and sell it today you would earn a total of 140.00 from holding China Publishing Media or generate 20.41% 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. China Publishing Media
Performance |
| Timeline |
| Industrial and Commercial |
| China Publishing Media |
Industrial and China Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and China Publishing
The main advantage of trading using opposite Industrial and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, China Publishing 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 China Publishing will offset losses from the drop in China Publishing's long position.| Industrial vs. Fiberhome Telecommunication Technologies | Industrial vs. Chengdu Spaceon Electronics | Industrial vs. Zhongtong Guomai Communication | Industrial vs. Railway Signal Communication |
| China Publishing vs. Keda Clean Energy | China Publishing vs. Anhui Jianghuai Automobile | China Publishing vs. Qilu Bank Co | China Publishing vs. Nanjing Putian Telecommunications |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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