Correlation Between Industrial and Senci Electric
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By analyzing existing cross correlation between Industrial and Commercial and Senci Electric Machinery, you can compare the effects of market volatilities on Industrial and Senci Electric 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 Senci Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Senci Electric.
Diversification Opportunities for Industrial and Senci Electric
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Senci is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Senci Electric Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senci Electric Machinery 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 Senci Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senci Electric Machinery has no effect on the direction of Industrial i.e., Industrial and Senci Electric go up and down completely randomly.
Pair Corralation between Industrial and Senci Electric
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.4 times more return on investment than Senci Electric. However, Industrial and Commercial is 2.47 times less risky than Senci Electric. It trades about 0.1 of its potential returns per unit of risk. Senci Electric Machinery is currently generating about 0.02 per unit of risk. If you would invest 477.00 in Industrial and Commercial on September 12, 2024 and sell it today you would earn a total of 154.00 from holding Industrial and Commercial or generate 32.29% 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. Senci Electric Machinery
Performance |
| Timeline |
| Industrial and Commercial |
| Senci Electric Machinery |
Industrial and Senci Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Senci Electric
The main advantage of trading using opposite Industrial and Senci Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Senci Electric 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 Senci Electric will offset losses from the drop in Senci Electric's long position.| Industrial vs. Eastroc Beverage Group | Industrial vs. China Publishing Media | Industrial vs. Inly Media Co | Industrial vs. Beijing Sanyuan Foods |
| Senci Electric vs. Agricultural Bank of | Senci Electric vs. Industrial and Commercial | Senci Electric vs. Bank of China | Senci Electric vs. PetroChina Co Ltd |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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