Correlation Between Industrial Bank and E Investment
Can any of the company-specific risk be diversified away by investing in both Industrial Bank and E Investment at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Industrial Bank and E Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Industrial Bank and E Investment Development, you can compare the effects of market volatilities on Industrial Bank and E Investment 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 Industrial Bank with a short position of E Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and E Investment.
Diversification Opportunities for Industrial Bank and E Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Industrial and 093230 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank and E Investment Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Investment Development and Industrial Bank 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 Industrial Bank are associated (or correlated) with E Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Investment Development has no effect on the direction of Industrial Bank i.e., Industrial Bank and E Investment go up and down completely randomly.
Pair Corralation between Industrial Bank and E Investment
If you would invest 1,436,000 in Industrial Bank on September 2, 2024 and sell it today you would earn a total of 52,000 from holding Industrial Bank or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Industrial Bank vs. E Investment Development
Performance |
| Timeline |
| Industrial Bank |
| E Investment Development |
Industrial Bank and E Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and E Investment
The main advantage of trading using opposite Industrial Bank and E Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, E Investment 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 E Investment will offset losses from the drop in E Investment's long position.| Industrial Bank vs. E Investment Development | Industrial Bank vs. Atinum Investment Co | Industrial Bank vs. Pureun Mutual Savings | Industrial Bank vs. SK Chemicals Co |
| E Investment vs. Hana Financial | E Investment vs. InfoBank | E Investment vs. Dgb Financial | E Investment vs. Korean Reinsurance Co |
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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