Correlation Between Industrial and Shanghai AtHub
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By analyzing existing cross correlation between Industrial and Commercial and Shanghai AtHub Co, you can compare the effects of market volatilities on Industrial and Shanghai AtHub 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 Shanghai AtHub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Shanghai AtHub.
Diversification Opportunities for Industrial and Shanghai AtHub
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Industrial and Shanghai is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Shanghai AtHub Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai AtHub 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 Shanghai AtHub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai AtHub has no effect on the direction of Industrial i.e., Industrial and Shanghai AtHub go up and down completely randomly.
Pair Corralation between Industrial and Shanghai AtHub
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.41 times more return on investment than Shanghai AtHub. However, Industrial and Commercial is 2.47 times less risky than Shanghai AtHub. It trades about 0.1 of its potential returns per unit of risk. Shanghai AtHub Co is currently generating about 0.02 per unit of risk. If you would invest 406.00 in Industrial and Commercial on September 28, 2024 and sell it today you would earn a total of 286.00 from holding Industrial and Commercial or generate 70.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Shanghai AtHub Co
Performance |
| Timeline |
| Industrial and Commercial |
| Shanghai AtHub |
Industrial and Shanghai AtHub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Shanghai AtHub
The main advantage of trading using opposite Industrial and Shanghai AtHub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Shanghai AtHub 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 Shanghai AtHub will offset losses from the drop in Shanghai AtHub's long position.| Industrial vs. Agricultural Bank of | Industrial vs. GRG Banking Equipment | Industrial vs. Eyebright Medical Technology | Industrial vs. Postal Savings Bank |
| Shanghai AtHub vs. Industrial and Commercial | Shanghai AtHub vs. Agricultural Bank of | Shanghai AtHub vs. China Construction Bank | Shanghai AtHub vs. Bank of China |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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