Correlation Between Industrial Bank and Jointo Energy
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By analyzing existing cross correlation between Industrial Bank Co and Jointo Energy Investment, you can compare the effects of market volatilities on Industrial Bank and Jointo Energy 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 Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Jointo Energy.
Diversification Opportunities for Industrial Bank and Jointo Energy
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Industrial and Jointo is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Jointo Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jointo Energy Investment 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 Co are associated (or correlated) with Jointo Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jointo Energy Investment has no effect on the direction of Industrial Bank i.e., Industrial Bank and Jointo Energy go up and down completely randomly.
Pair Corralation between Industrial Bank and Jointo Energy
Assuming the 90 days trading horizon Industrial Bank Co is expected to generate 0.47 times more return on investment than Jointo Energy. However, Industrial Bank Co is 2.14 times less risky than Jointo Energy. It trades about 0.18 of its potential returns per unit of risk. Jointo Energy Investment is currently generating about -0.2 per unit of risk. If you would invest 1,919 in Industrial Bank Co on October 26, 2024 and sell it today you would earn a total of 95.00 from holding Industrial Bank Co or generate 4.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Bank Co vs. Jointo Energy Investment
Performance |
| Timeline |
| Industrial Bank |
| Jointo Energy Investment |
Industrial Bank and Jointo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Jointo Energy
The main advantage of trading using opposite Industrial Bank and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, Jointo Energy 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 Jointo Energy will offset losses from the drop in Jointo Energy's long position.| Industrial Bank vs. China Life Insurance | Industrial Bank vs. Cinda Securities Co | Industrial Bank vs. Piotech Inc A | Industrial Bank vs. Dongxing Sec Co |
| Jointo Energy vs. Peoples Insurance of | Jointo Energy vs. Ningbo Jintian Copper | Jointo Energy vs. Tieling Newcity Investment | Jointo Energy vs. Xiandai Investment 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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