Correlation Between Industrial and Oppein Home
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By analyzing existing cross correlation between Industrial and Commercial and Oppein Home Group, you can compare the effects of market volatilities on Industrial and Oppein Home 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 Oppein Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Oppein Home.
Diversification Opportunities for Industrial and Oppein Home
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Oppein is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Oppein Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppein Home 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 Oppein Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppein Home Group has no effect on the direction of Industrial i.e., Industrial and Oppein Home go up and down completely randomly.
Pair Corralation between Industrial and Oppein Home
Assuming the 90 days trading horizon Industrial is expected to generate 3.69 times less return on investment than Oppein Home. But when comparing it to its historical volatility, Industrial and Commercial is 2.77 times less risky than Oppein Home. It trades about 0.13 of its potential returns per unit of risk. Oppein Home Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 4,775 in Oppein Home Group on September 25, 2024 and sell it today you would earn a total of 2,056 from holding Oppein Home Group or generate 43.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Industrial and Commercial vs. Oppein Home Group
Performance |
Timeline |
Industrial and Commercial |
Oppein Home Group |
Industrial and Oppein Home Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Industrial and Oppein Home
The main advantage of trading using opposite Industrial and Oppein Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Oppein Home 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 Oppein Home will offset losses from the drop in Oppein Home's long position.Industrial vs. Ningxia Younglight Chemicals | Industrial vs. Sanbo Hospital Management | Industrial vs. China Asset Management | Industrial vs. Huaxia Fund Management |
Oppein Home vs. Agricultural Bank of | Oppein Home vs. Industrial and Commercial | Oppein Home vs. Bank of China | Oppein Home vs. China Construction 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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