Correlation Between China Longyuan and Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Longyuan Power and Industrial and Commercial, you can compare the effects of market volatilities on China Longyuan 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 Longyuan with a short position of Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Longyuan and Industrial.
Diversification Opportunities for China Longyuan and Industrial
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Industrial is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding China Longyuan Power 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 Longyuan 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 Longyuan Power 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 Longyuan i.e., China Longyuan and Industrial go up and down completely randomly.
Pair Corralation between China Longyuan and Industrial
Assuming the 90 days trading horizon China Longyuan Power is expected to under-perform the Industrial. In addition to that, China Longyuan is 1.22 times more volatile than Industrial and Commercial. It trades about -0.06 of its total potential returns per unit of risk. Industrial and Commercial is currently generating about 0.42 per unit of volatility. If you would invest 607.00 in Industrial and Commercial on September 25, 2024 and sell it today you would earn a total of 63.00 from holding Industrial and Commercial or generate 10.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
China Longyuan Power vs. Industrial and Commercial
Performance |
Timeline |
China Longyuan Power |
Industrial and Commercial |
China Longyuan and Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Longyuan and Industrial
The main advantage of trading using opposite China Longyuan and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Longyuan 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.China Longyuan vs. Industrial and Commercial | China Longyuan vs. Agricultural Bank of | China Longyuan vs. China Construction Bank | China Longyuan vs. Bank of China |
Industrial vs. Ningxia Younglight Chemicals | Industrial vs. Sanbo Hospital Management | Industrial vs. China Asset Management | Industrial vs. Huaxia Fund Management |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
CEOs Directory Screen CEOs from public companies around the world | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |