Correlation Between Zoomlion Heavy and Industrial Bank
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By analyzing existing cross correlation between Zoomlion Heavy Industry and Industrial Bank Co, you can compare the effects of market volatilities on Zoomlion Heavy and Industrial Bank 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 Zoomlion Heavy with a short position of Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoomlion Heavy and Industrial Bank.
Diversification Opportunities for Zoomlion Heavy and Industrial Bank
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zoomlion and Industrial is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Zoomlion Heavy Industry and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank and Zoomlion Heavy 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 Zoomlion Heavy Industry are associated (or correlated) with Industrial Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Bank has no effect on the direction of Zoomlion Heavy i.e., Zoomlion Heavy and Industrial Bank go up and down completely randomly.
Pair Corralation between Zoomlion Heavy and Industrial Bank
Assuming the 90 days trading horizon Zoomlion Heavy is expected to generate 3.07 times less return on investment than Industrial Bank. In addition to that, Zoomlion Heavy is 1.17 times more volatile than Industrial Bank Co. It trades about 0.07 of its total potential returns per unit of risk. Industrial Bank Co is currently generating about 0.26 per unit of volatility. If you would invest 1,811 in Industrial Bank Co on September 28, 2024 and sell it today you would earn a total of 111.00 from holding Industrial Bank Co or generate 6.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoomlion Heavy Industry vs. Industrial Bank Co
Performance |
| Timeline |
| Zoomlion Heavy Industry |
| Industrial Bank |
Zoomlion Heavy and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoomlion Heavy and Industrial Bank
The main advantage of trading using opposite Zoomlion Heavy and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoomlion Heavy position performs unexpectedly, Industrial Bank 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 Bank will offset losses from the drop in Industrial Bank's long position.| Zoomlion Heavy vs. Industrial and Commercial | Zoomlion Heavy vs. Agricultural Bank of | Zoomlion Heavy vs. China Construction Bank | Zoomlion Heavy vs. Bank of China |
| Industrial Bank vs. Kweichow Moutai Co | Industrial Bank vs. Contemporary Amperex Technology | Industrial Bank vs. G bits Network Technology | Industrial Bank vs. BYD Co Ltd |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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