Correlation Between Senci Electric and Industrial
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By analyzing existing cross correlation between Senci Electric Machinery and Industrial and Commercial, you can compare the effects of market volatilities on Senci Electric 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 Senci Electric with a short position of Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senci Electric and Industrial.
Diversification Opportunities for Senci Electric and Industrial
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Senci and Industrial is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Senci Electric Machinery 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 Senci Electric 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 Senci Electric Machinery 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 Senci Electric i.e., Senci Electric and Industrial go up and down completely randomly.
Pair Corralation between Senci Electric and Industrial
Assuming the 90 days trading horizon Senci Electric Machinery is expected to generate 2.66 times more return on investment than Industrial. However, Senci Electric is 2.66 times more volatile than Industrial and Commercial. It trades about 0.09 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.07 per unit of risk. If you would invest 1,698 in Senci Electric Machinery on October 20, 2024 and sell it today you would earn a total of 103.00 from holding Senci Electric Machinery or generate 6.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senci Electric Machinery vs. Industrial and Commercial
Performance |
| Timeline |
| Senci Electric Machinery |
| Industrial and Commercial |
Senci Electric and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senci Electric and Industrial
The main advantage of trading using opposite Senci Electric and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senci Electric 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.| Senci Electric vs. PetroChina Co Ltd | Senci Electric vs. China Mobile Limited | Senci Electric vs. CNOOC Limited | Senci Electric vs. Ping An Insurance |
| Industrial vs. Shenzhen Silver Basis | Industrial vs. Dezhan HealthCare Co | Industrial vs. De Rucci Healthy | Industrial vs. Humanwell Healthcare Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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