Correlation Between Industrial and Sailun Jinyu
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By analyzing existing cross correlation between Industrial and Commercial and Sailun Jinyu Group, you can compare the effects of market volatilities on Industrial and Sailun Jinyu 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 Industrial with a short position of Sailun Jinyu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Sailun Jinyu.
Diversification Opportunities for Industrial and Sailun Jinyu
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Industrial and Sailun is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Sailun Jinyu Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sailun Jinyu Group and Industrial 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 Industrial and Commercial are associated (or correlated) with Sailun Jinyu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sailun Jinyu Group has no effect on the direction of Industrial i.e., Industrial and Sailun Jinyu go up and down completely randomly.
Pair Corralation between Industrial and Sailun Jinyu
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.57 times more return on investment than Sailun Jinyu. However, Industrial and Commercial is 1.76 times less risky than Sailun Jinyu. It trades about 0.09 of its potential returns per unit of risk. Sailun Jinyu Group is currently generating about 0.05 per unit of risk. If you would invest 404.00 in Industrial and Commercial on September 23, 2024 and sell it today you would earn a total of 249.00 from holding Industrial and Commercial or generate 61.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Industrial and Commercial vs. Sailun Jinyu Group
Performance |
Timeline |
Industrial and Commercial |
Sailun Jinyu Group |
Industrial and Sailun Jinyu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Industrial and Sailun Jinyu
The main advantage of trading using opposite Industrial and Sailun Jinyu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Sailun Jinyu 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 Sailun Jinyu will offset losses from the drop in Sailun Jinyu's long position.Industrial vs. Kweichow Moutai Co | Industrial vs. Agricultural Bank of | Industrial vs. China Mobile Limited | Industrial vs. China Construction Bank |
Sailun Jinyu vs. Industrial and Commercial | Sailun Jinyu vs. Agricultural Bank of | Sailun Jinyu vs. China Construction Bank | Sailun Jinyu vs. Bank of China |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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