Correlation Between Wuhan Xianglong and Industrial Bank
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By analyzing existing cross correlation between Wuhan Xianglong Power and Industrial Bank Co, you can compare the effects of market volatilities on Wuhan Xianglong 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 Wuhan Xianglong with a short position of Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Xianglong and Industrial Bank.
Diversification Opportunities for Wuhan Xianglong and Industrial Bank
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wuhan and Industrial is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Xianglong Power and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank and Wuhan Xianglong 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 Wuhan Xianglong Power 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 Wuhan Xianglong i.e., Wuhan Xianglong and Industrial Bank go up and down completely randomly.
Pair Corralation between Wuhan Xianglong and Industrial Bank
Assuming the 90 days trading horizon Wuhan Xianglong Power is expected to generate 2.37 times more return on investment than Industrial Bank. However, Wuhan Xianglong is 2.37 times more volatile than Industrial Bank Co. It trades about 0.25 of its potential returns per unit of risk. Industrial Bank Co is currently generating about 0.09 per unit of risk. If you would invest 641.00 in Wuhan Xianglong Power on September 3, 2024 and sell it today you would earn a total of 587.00 from holding Wuhan Xianglong Power or generate 91.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Xianglong Power vs. Industrial Bank Co
Performance |
| Timeline |
| Wuhan Xianglong Power |
| Industrial Bank |
Wuhan Xianglong and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Xianglong and Industrial Bank
The main advantage of trading using opposite Wuhan Xianglong and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Xianglong 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.| Wuhan Xianglong vs. Cultural Investment Holdings | Wuhan Xianglong vs. Chengtun Mining Group | Wuhan Xianglong vs. Nuode Investment Co | Wuhan Xianglong vs. Metro Investment Development |
| Industrial Bank vs. Chongqing Road Bridge | Industrial Bank vs. Wuhan Xianglong Power | Industrial Bank vs. Empyrean Technology Co | Industrial Bank vs. Yuanjie Semiconductor Technology |
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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