Correlation Between Industrial Bank and HyVision System
Can any of the company-specific risk be diversified away by investing in both Industrial Bank and HyVision System 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 HyVision System into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Industrial Bank and HyVision System, you can compare the effects of market volatilities on Industrial Bank and HyVision System 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 HyVision System. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and HyVision System.
Diversification Opportunities for Industrial Bank and HyVision System
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Industrial and HyVision is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank and HyVision System in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HyVision System 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 HyVision System. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HyVision System has no effect on the direction of Industrial Bank i.e., Industrial Bank and HyVision System go up and down completely randomly.
Pair Corralation between Industrial Bank and HyVision System
Assuming the 90 days trading horizon Industrial Bank is expected to generate 0.3 times more return on investment than HyVision System. However, Industrial Bank is 3.37 times less risky than HyVision System. It trades about 0.05 of its potential returns per unit of risk. HyVision System is currently generating about -0.09 per unit of risk. If you would invest 1,450,000 in Industrial Bank on August 27, 2024 and sell it today you would earn a total of 15,000 from holding Industrial Bank or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Bank vs. HyVision System
Performance |
| Timeline |
| Industrial Bank |
| HyVision System |
Industrial Bank and HyVision System Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and HyVision System
The main advantage of trading using opposite Industrial Bank and HyVision System positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, HyVision System 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 HyVision System will offset losses from the drop in HyVision System's long position.| Industrial Bank vs. Haitai Confectionery Foods | Industrial Bank vs. Shinsegae Information Communication | Industrial Bank vs. SCI Information Service | Industrial Bank vs. Ssangyong Information Communication |
| HyVision System vs. Korea Real Estate | HyVision System vs. Korea Ratings Co | HyVision System vs. IQuest Co | HyVision System vs. Wonbang Tech 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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