Correlation Between Industrial and Hangzhou Xili
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By analyzing existing cross correlation between Industrial and Commercial and Hangzhou Xili Intelligent, you can compare the effects of market volatilities on Industrial and Hangzhou Xili 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 Hangzhou Xili. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Hangzhou Xili.
Diversification Opportunities for Industrial and Hangzhou Xili
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Hangzhou is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Hangzhou Xili Intelligent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Xili Intelligent 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 Hangzhou Xili. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Xili Intelligent has no effect on the direction of Industrial i.e., Industrial and Hangzhou Xili go up and down completely randomly.
Pair Corralation between Industrial and Hangzhou Xili
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.43 times more return on investment than Hangzhou Xili. However, Industrial and Commercial is 2.35 times less risky than Hangzhou Xili. It trades about 0.24 of its potential returns per unit of risk. Hangzhou Xili Intelligent is currently generating about 0.01 per unit of risk. If you would invest 600.00 in Industrial and Commercial on September 13, 2024 and sell it today you would earn a total of 31.00 from holding Industrial and Commercial or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Industrial and Commercial vs. Hangzhou Xili Intelligent
Performance |
| Timeline |
| Industrial and Commercial |
| Hangzhou Xili Intelligent |
Industrial and Hangzhou Xili Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Hangzhou Xili
The main advantage of trading using opposite Industrial and Hangzhou Xili positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Hangzhou Xili 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 Hangzhou Xili will offset losses from the drop in Hangzhou Xili's long position.| Industrial vs. Pengxin International Mining | Industrial vs. Qilu Bank Co | Industrial vs. Tibet Huayu Mining | Industrial vs. Chengtun Mining Group |
| Hangzhou Xili vs. Industrial and Commercial | Hangzhou Xili vs. Agricultural Bank of | Hangzhou Xili vs. China Construction Bank | Hangzhou Xili 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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