Correlation Between Industrial and Xinya Electronic
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By analyzing existing cross correlation between Industrial and Commercial and Xinya Electronic Co, you can compare the effects of market volatilities on Industrial and Xinya Electronic 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 Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Xinya Electronic.
Diversification Opportunities for Industrial and Xinya Electronic
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Xinya is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic 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 Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of Industrial i.e., Industrial and Xinya Electronic go up and down completely randomly.
Pair Corralation between Industrial and Xinya Electronic
Assuming the 90 days trading horizon Industrial is expected to generate 1.64 times less return on investment than Xinya Electronic. But when comparing it to its historical volatility, Industrial and Commercial is 2.67 times less risky than Xinya Electronic. It trades about 0.13 of its potential returns per unit of risk. Xinya Electronic Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,219 in Xinya Electronic Co on December 4, 2024 and sell it today you would earn a total of 365.00 from holding Xinya Electronic Co or generate 29.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.13% |
| Values | Daily Returns |
Industrial and Commercial vs. Xinya Electronic Co
Performance |
| Timeline |
| Industrial and Commercial |
| Xinya Electronic |
Industrial and Xinya Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Xinya Electronic
The main advantage of trading using opposite Industrial and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic's long position.| Industrial vs. Aluminum Corp of | Industrial vs. Rising Nonferrous Metals | Industrial vs. Yonghui Superstores Co | Industrial vs. Marssenger Kitchenware Co |
| Xinya Electronic vs. Markor International Home | Xinya Electronic vs. Zhongshan Public Utilities | Xinya Electronic vs. Jiangsu Hoperun Software | Xinya Electronic vs. Dareway Software Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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