Correlation Between Shenzhen Noposion and Industrial Bank
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Industrial Bank Co, you can compare the effects of market volatilities on Shenzhen Noposion 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 Shenzhen Noposion with a short position of Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Industrial Bank.
Diversification Opportunities for Shenzhen Noposion and Industrial Bank
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Industrial is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank and Shenzhen Noposion 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 Shenzhen Noposion Agrochemicals 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 Shenzhen Noposion i.e., Shenzhen Noposion and Industrial Bank go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Industrial Bank
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 1.91 times more return on investment than Industrial Bank. However, Shenzhen Noposion is 1.91 times more volatile than Industrial Bank Co. It trades about 0.06 of its potential returns per unit of risk. Industrial Bank Co is currently generating about 0.03 per unit of risk. If you would invest 537.00 in Shenzhen Noposion Agrochemicals on October 11, 2024 and sell it today you would earn a total of 457.00 from holding Shenzhen Noposion Agrochemicals or generate 85.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Industrial Bank Co
Performance |
| Timeline |
| Shenzhen Noposion |
| Industrial Bank |
Shenzhen Noposion and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Industrial Bank
The main advantage of trading using opposite Shenzhen Noposion and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion 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.| Shenzhen Noposion vs. Vanfund Urban Investment | Shenzhen Noposion vs. Lecron Energy Saving | Shenzhen Noposion vs. Tieling Newcity Investment | Shenzhen Noposion vs. Jiangsu Financial Leasing |
| Industrial Bank vs. Shenzhen Noposion Agrochemicals | Industrial Bank vs. Shandong Polymer Biochemicals | Industrial Bank vs. Pengxin International Mining | Industrial Bank vs. China Mobile Limited |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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