Correlation Between Industrial and Xingguang Agricultural
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By analyzing existing cross correlation between Industrial and Commercial and Xingguang Agricultural Mach, you can compare the effects of market volatilities on Industrial and Xingguang Agricultural 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 Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Xingguang Agricultural.
Diversification Opportunities for Industrial and Xingguang Agricultural
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Industrial and Xingguang is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural 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 Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of Industrial i.e., Industrial and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between Industrial and Xingguang Agricultural
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.4 times more return on investment than Xingguang Agricultural. However, Industrial and Commercial is 2.5 times less risky than Xingguang Agricultural. It trades about -0.08 of its potential returns per unit of risk. Xingguang Agricultural Mach is currently generating about -0.29 per unit of risk. If you would invest 670.00 in Industrial and Commercial on October 24, 2024 and sell it today you would lose (15.00) from holding Industrial and Commercial or give up 2.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Xingguang Agricultural Mach
Performance |
| Timeline |
| Industrial and Commercial |
| Xingguang Agricultural |
Industrial and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Xingguang Agricultural
The main advantage of trading using opposite Industrial and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural's long position.| Industrial vs. Jilin OLED Material | Industrial vs. Nuode Investment Co | Industrial vs. Guangzhou Restaurants Group | Industrial vs. Konfoong Materials International |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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