Correlation Between Changchun and Industrial Bank
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By analyzing existing cross correlation between Changchun UP Optotech and Industrial Bank Co, you can compare the effects of market volatilities on Changchun 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 Changchun with a short position of Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun and Industrial Bank.
Diversification Opportunities for Changchun and Industrial Bank
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Changchun and Industrial is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Changchun UP Optotech and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank and Changchun 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 Changchun UP Optotech 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 Changchun i.e., Changchun and Industrial Bank go up and down completely randomly.
Pair Corralation between Changchun and Industrial Bank
Assuming the 90 days trading horizon Changchun UP Optotech is expected to under-perform the Industrial Bank. In addition to that, Changchun is 3.71 times more volatile than Industrial Bank Co. It trades about -0.21 of its total potential returns per unit of risk. Industrial Bank Co is currently generating about 0.11 per unit of volatility. If you would invest 1,813 in Industrial Bank Co on September 13, 2024 and sell it today you would earn a total of 42.00 from holding Industrial Bank Co or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun UP Optotech vs. Industrial Bank Co
Performance |
| Timeline |
| Changchun UP Optotech |
| Industrial Bank |
Changchun and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun and Industrial Bank
The main advantage of trading using opposite Changchun and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun 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.| Changchun vs. China Life Insurance | Changchun vs. Cinda Securities Co | Changchun vs. Piotech Inc A | Changchun vs. Dongxing Sec Co |
| Industrial Bank vs. Industrial and Commercial | Industrial Bank vs. China Construction Bank | Industrial Bank vs. Bank of China | Industrial Bank vs. Agricultural Bank of |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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