Correlation Between National Silicon and Industrial
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By analyzing existing cross correlation between National Silicon Industry and Industrial and Commercial, you can compare the effects of market volatilities on National Silicon 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 National Silicon with a short position of Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Silicon and Industrial.
Diversification Opportunities for National Silicon and Industrial
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between National and Industrial is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding National Silicon Industry 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 National Silicon 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 National Silicon Industry 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 National Silicon i.e., National Silicon and Industrial go up and down completely randomly.
Pair Corralation between National Silicon and Industrial
Assuming the 90 days trading horizon National Silicon Industry is expected to under-perform the Industrial. In addition to that, National Silicon is 3.74 times more volatile than Industrial and Commercial. It trades about -0.04 of its total potential returns per unit of risk. Industrial and Commercial is currently generating about 0.09 per unit of volatility. If you would invest 604.00 in Industrial and Commercial on September 1, 2024 and sell it today you would earn a total of 11.00 from holding Industrial and Commercial or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Silicon Industry vs. Industrial and Commercial
Performance |
| Timeline |
| National Silicon Industry |
| Industrial and Commercial |
National Silicon and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Silicon and Industrial
The main advantage of trading using opposite National Silicon and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Silicon 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.| National Silicon vs. Industrial and Commercial | National Silicon vs. Kweichow Moutai Co | National Silicon vs. Agricultural Bank of | National Silicon vs. China Mobile Limited |
| Industrial vs. Fiberhome Telecommunication Technologies | Industrial vs. Chengdu Spaceon Electronics | Industrial vs. Zhongtong Guomai Communication | Industrial vs. Railway Signal Communication |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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