Correlation Between China Galaxy and Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Galaxy Securities and Industrial and Commercial, you can compare the effects of market volatilities on China Galaxy and Industrial 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 China Galaxy with a short position of Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Galaxy and Industrial.
Diversification Opportunities for China Galaxy and Industrial
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Industrial is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding China Galaxy Securities and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial and China Galaxy 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 China Galaxy Securities are associated (or correlated) with Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of China Galaxy i.e., China Galaxy and Industrial go up and down completely randomly.
Pair Corralation between China Galaxy and Industrial
Assuming the 90 days trading horizon China Galaxy Securities is expected to generate 1.05 times more return on investment than Industrial. However, China Galaxy is 1.05 times more volatile than Industrial and Commercial. It trades about 0.16 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.15 per unit of risk. If you would invest 1,360 in China Galaxy Securities on November 7, 2024 and sell it today you would earn a total of 47.00 from holding China Galaxy Securities or generate 3.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Galaxy Securities vs. Industrial and Commercial
Performance |
| Timeline |
| China Galaxy Securities |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Industrial and Commercial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
China Galaxy and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Galaxy and Industrial
The main advantage of trading using opposite China Galaxy and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Galaxy position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.The idea behind China Galaxy Securities and Industrial and Commercial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |