Correlation Between Industrial and Inner Mongolia
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By analyzing existing cross correlation between Industrial and Commercial and Inner Mongolia Yitai, you can compare the effects of market volatilities on Industrial and Inner Mongolia 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 Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Inner Mongolia.
Diversification Opportunities for Industrial and Inner Mongolia
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Inner is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Inner Mongolia Yitai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia Yitai 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 Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia Yitai has no effect on the direction of Industrial i.e., Industrial and Inner Mongolia go up and down completely randomly.
Pair Corralation between Industrial and Inner Mongolia
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.96 times more return on investment than Inner Mongolia. However, Industrial and Commercial is 1.04 times less risky than Inner Mongolia. It trades about 0.15 of its potential returns per unit of risk. Inner Mongolia Yitai is currently generating about 0.14 per unit of risk. If you would invest 568.00 in Industrial and Commercial on September 14, 2024 and sell it today you would earn a total of 74.00 from holding Industrial and Commercial or generate 13.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.28% |
Values | Daily Returns |
Industrial and Commercial vs. Inner Mongolia Yitai
Performance |
Timeline |
Industrial and Commercial |
Inner Mongolia Yitai |
Industrial and Inner Mongolia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Industrial and Inner Mongolia
The main advantage of trading using opposite Industrial and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.Industrial vs. Allmed Medical Products | Industrial vs. Blue Sail Medical | Industrial vs. Yingde Greatchem Chemicals | Industrial vs. Zhongzhu Medical Holdings |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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