Correlation Between GRG Banking and Industrial
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By analyzing existing cross correlation between GRG Banking Equipment and Industrial and Commercial, you can compare the effects of market volatilities on GRG Banking 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 GRG Banking with a short position of Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Industrial.
Diversification Opportunities for GRG Banking and Industrial
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GRG and Industrial is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment 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 GRG Banking 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 GRG Banking Equipment 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 GRG Banking i.e., GRG Banking and Industrial go up and down completely randomly.
Pair Corralation between GRG Banking and Industrial
Assuming the 90 days trading horizon GRG Banking is expected to generate 1.6 times less return on investment than Industrial. In addition to that, GRG Banking is 1.9 times more volatile than Industrial and Commercial. It trades about 0.03 of its total potential returns per unit of risk. Industrial and Commercial is currently generating about 0.1 per unit of volatility. If you would invest 406.00 in Industrial and Commercial on September 28, 2024 and sell it today you would earn a total of 286.00 from holding Industrial and Commercial or generate 70.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
GRG Banking Equipment vs. Industrial and Commercial
Performance |
| Timeline |
| GRG Banking Equipment |
| Industrial and Commercial |
GRG Banking and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and Industrial
The main advantage of trading using opposite GRG Banking and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking 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.| GRG Banking vs. Shandong Longquan Pipeline | GRG Banking vs. Zhejiang Construction Investment | GRG Banking vs. Runjian Communication Co | GRG Banking vs. Jiangsu Yueda Investment |
| Industrial vs. Agricultural Bank of | Industrial vs. GRG Banking Equipment | Industrial vs. Eyebright Medical Technology | Industrial vs. Postal Savings 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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