Correlation Between Songz Automobile and Industrial Bank
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By analyzing existing cross correlation between Songz Automobile Air and Industrial Bank Co, you can compare the effects of market volatilities on Songz Automobile 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 Songz Automobile with a short position of Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and Industrial Bank.
Diversification Opportunities for Songz Automobile and Industrial Bank
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Songz and Industrial is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank and Songz Automobile 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 Songz Automobile Air 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 Songz Automobile i.e., Songz Automobile and Industrial Bank go up and down completely randomly.
Pair Corralation between Songz Automobile and Industrial Bank
Assuming the 90 days trading horizon Songz Automobile Air is expected to under-perform the Industrial Bank. In addition to that, Songz Automobile is 2.23 times more volatile than Industrial Bank Co. It trades about -0.29 of its total potential returns per unit of risk. Industrial Bank Co is currently generating about 0.41 per unit of volatility. If you would invest 1,815 in Industrial Bank Co on October 14, 2024 and sell it today you would earn a total of 143.00 from holding Industrial Bank Co or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Songz Automobile Air vs. Industrial Bank Co
Performance |
| Timeline |
| Songz Automobile Air |
| Industrial Bank |
Songz Automobile and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songz Automobile and Industrial Bank
The main advantage of trading using opposite Songz Automobile and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile 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.| Songz Automobile vs. Anyang Iron Steel | Songz Automobile vs. Elite Color Environmental | Songz Automobile vs. TongFu Microelectronics Co | Songz Automobile vs. Shenzhen MYS Environmental |
| Industrial Bank vs. Dongfeng Automobile Co | Industrial Bank vs. Haima Automobile Group | Industrial Bank vs. Songz Automobile Air | Industrial Bank vs. Hubei Xingfa Chemicals |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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