Correlation Between Guangdong Skychem and Industrial
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By analyzing existing cross correlation between Guangdong Skychem Technology and Industrial and Commercial, you can compare the effects of market volatilities on Guangdong Skychem 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 Guangdong Skychem with a short position of Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Skychem and Industrial.
Diversification Opportunities for Guangdong Skychem and Industrial
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Industrial is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Skychem Technology 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 Guangdong Skychem 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 Guangdong Skychem Technology 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 Guangdong Skychem i.e., Guangdong Skychem and Industrial go up and down completely randomly.
Pair Corralation between Guangdong Skychem and Industrial
Assuming the 90 days trading horizon Guangdong Skychem is expected to generate 10.51 times less return on investment than Industrial. In addition to that, Guangdong Skychem is 2.36 times more volatile than Industrial and Commercial. It trades about 0.02 of its total potential returns per unit of risk. Industrial and Commercial is currently generating about 0.43 per unit of volatility. 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Skychem Technology vs. Industrial and Commercial
Performance |
| Timeline |
| Guangdong Skychem |
| Industrial and Commercial |
Guangdong Skychem and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Skychem and Industrial
The main advantage of trading using opposite Guangdong Skychem and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Skychem 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.| Guangdong Skychem vs. Industrial and Commercial | Guangdong Skychem vs. Kweichow Moutai Co | Guangdong Skychem vs. Agricultural Bank of | Guangdong Skychem vs. China Mobile Limited |
| Industrial vs. Agricultural Bank of | Industrial vs. GRG Banking Equipment | Industrial vs. Eyebright Medical Technology | Industrial vs. Postal Savings Bank |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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