Correlation Between Shenzhen AV-Display and Industrial Bank
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By analyzing existing cross correlation between Shenzhen AV Display Co and Industrial Bank Co, you can compare the effects of market volatilities on Shenzhen AV-Display 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 AV-Display with a short position of Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen AV-Display and Industrial Bank.
Diversification Opportunities for Shenzhen AV-Display and Industrial Bank
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Industrial is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen AV Display Co 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 AV-Display 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 AV Display Co 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 AV-Display i.e., Shenzhen AV-Display and Industrial Bank go up and down completely randomly.
Pair Corralation between Shenzhen AV-Display and Industrial Bank
Assuming the 90 days trading horizon Shenzhen AV Display Co is expected to under-perform the Industrial Bank. In addition to that, Shenzhen AV-Display is 1.28 times more volatile than Industrial Bank Co. It trades about -0.06 of its total potential returns per unit of risk. Industrial Bank Co is currently generating about 0.09 per unit of volatility. If you would invest 2,075 in Industrial Bank Co on January 2, 2025 and sell it today you would earn a total of 51.00 from holding Industrial Bank Co or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen AV Display Co vs. Industrial Bank Co
Performance |
| Timeline |
| Shenzhen AV Display |
| Industrial Bank |
Shenzhen AV-Display and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen AV-Display and Industrial Bank
The main advantage of trading using opposite Shenzhen AV-Display and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen AV-Display 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 AV-Display vs. Citic Offshore Helicopter | Shenzhen AV-Display vs. Offshore Oil Engineering | Shenzhen AV-Display vs. China World Trade | Shenzhen AV-Display vs. Gansu Huangtai Wine marketing |
| Industrial Bank vs. Xinya Electronic Co | Industrial Bank vs. Nantong Haixing Electronics | Industrial Bank vs. Sihui Fuji Electronics | Industrial Bank vs. Bosera CMSK Industrial |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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