Correlation Between Industrial and Guobo Electronics
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By analyzing existing cross correlation between Industrial and Commercial and Guobo Electronics Co, you can compare the effects of market volatilities on Industrial and Guobo Electronics 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 Guobo Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Guobo Electronics.
Diversification Opportunities for Industrial and Guobo Electronics
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Industrial and Guobo is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Guobo Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guobo Electronics 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 Guobo Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guobo Electronics has no effect on the direction of Industrial i.e., Industrial and Guobo Electronics go up and down completely randomly.
Pair Corralation between Industrial and Guobo Electronics
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.64 times more return on investment than Guobo Electronics. However, Industrial and Commercial is 1.56 times less risky than Guobo Electronics. It trades about 0.43 of its potential returns per unit of risk. Guobo Electronics Co is currently generating about -0.19 per unit of risk. If you would invest 620.00 in Industrial and Commercial on September 28, 2024 and sell it today you would earn a total of 73.00 from holding Industrial and Commercial or generate 11.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Guobo Electronics Co
Performance |
| Timeline |
| Industrial and Commercial |
| Guobo Electronics |
Industrial and Guobo Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Guobo Electronics
The main advantage of trading using opposite Industrial and Guobo Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Guobo Electronics 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 Guobo Electronics will offset losses from the drop in Guobo Electronics' long position.| Industrial vs. Agricultural Bank of | Industrial vs. GRG Banking Equipment | Industrial vs. Eyebright Medical Technology | Industrial vs. Postal Savings Bank |
| Guobo Electronics vs. Postal Savings Bank | Guobo Electronics vs. HeNan Splendor Science | Guobo Electronics vs. Hua Xia Bank | Guobo Electronics vs. Bloomage Biotechnology Corp |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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