Correlation Between State Grid and Industrial Bank
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By analyzing existing cross correlation between State Grid InformationCommunication and Industrial Bank Co, you can compare the effects of market volatilities on State Grid 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 State Grid with a short position of Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Industrial Bank.
Diversification Opportunities for State Grid and Industrial Bank
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between State and Industrial is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank and State Grid 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 State Grid InformationCommunication 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 State Grid i.e., State Grid and Industrial Bank go up and down completely randomly.
Pair Corralation between State Grid and Industrial Bank
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to under-perform the Industrial Bank. In addition to that, State Grid is 1.77 times more volatile than Industrial Bank Co. It trades about -0.46 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 |
State Grid InformationCommunic vs. Industrial Bank Co
Performance |
| Timeline |
| State Grid Informati |
| Industrial Bank |
State Grid and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Industrial Bank
The main advantage of trading using opposite State Grid and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid 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.| State Grid vs. Dymatic Chemicals | State Grid vs. Shanghai Shibei Hi Tech | State Grid vs. FSPG Hi Tech Co | State Grid vs. Guangzhou Jointas Chemical |
| Industrial Bank vs. Postal Savings Bank | Industrial Bank vs. State Grid InformationCommunication | Industrial Bank vs. Wuhan Yangtze Communication | Industrial Bank vs. Xiangyang Automobile Bearing |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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