Correlation Between Gem Year and Industrial Bank
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By analyzing existing cross correlation between Gem Year Industrial Co and Industrial Bank Co, you can compare the effects of market volatilities on Gem Year 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 Gem Year with a short position of Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Industrial Bank.
Diversification Opportunities for Gem Year and Industrial Bank
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gem and Industrial is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial 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 Gem Year 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 Gem Year Industrial 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 Gem Year i.e., Gem Year and Industrial Bank go up and down completely randomly.
Pair Corralation between Gem Year and Industrial Bank
Assuming the 90 days trading horizon Gem Year Industrial Co is expected to generate 1.69 times more return on investment than Industrial Bank. However, Gem Year is 1.69 times more volatile than Industrial Bank Co. It trades about 0.07 of its potential returns per unit of risk. Industrial Bank Co is currently generating about 0.01 per unit of risk. If you would invest 358.00 in Gem Year Industrial Co on August 29, 2024 and sell it today you would earn a total of 83.00 from holding Gem Year Industrial Co or generate 23.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Industrial Bank Co
Performance |
| Timeline |
| Gem Year Industrial |
| Industrial Bank |
Gem Year and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Industrial Bank
The main advantage of trading using opposite Gem Year and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year 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.| Gem Year vs. Industrial and Commercial | Gem Year vs. Agricultural Bank of | Gem Year vs. China Construction Bank | Gem Year vs. Bank of China |
| Industrial Bank vs. Beijing Mainstreets Investment | Industrial Bank vs. Xiandai Investment Co | Industrial Bank vs. Air China Ltd | Industrial Bank vs. Holitech Technology 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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