Correlation Between Industrial Bank and Guocheng Mining
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By analyzing existing cross correlation between Industrial Bank Co and Guocheng Mining Co, you can compare the effects of market volatilities on Industrial Bank and Guocheng Mining 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 Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Guocheng Mining.
Diversification Opportunities for Industrial Bank and Guocheng Mining
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Industrial and Guocheng is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining 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 Guocheng Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guocheng Mining has no effect on the direction of Industrial Bank i.e., Industrial Bank and Guocheng Mining go up and down completely randomly.
Pair Corralation between Industrial Bank and Guocheng Mining
Assuming the 90 days trading horizon Industrial Bank Co is expected to generate 0.35 times more return on investment than Guocheng Mining. However, Industrial Bank Co is 2.86 times less risky than Guocheng Mining. It trades about 0.28 of its potential returns per unit of risk. Guocheng Mining Co is currently generating about -0.13 per unit of risk. If you would invest 1,882 in Industrial Bank Co on October 23, 2024 and sell it today you would earn a total of 106.00 from holding Industrial Bank Co or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Bank Co vs. Guocheng Mining Co
Performance |
| Timeline |
| Industrial Bank |
| Guocheng Mining |
Industrial Bank and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Guocheng Mining
The main advantage of trading using opposite Industrial Bank and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, Guocheng Mining 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 Guocheng Mining will offset losses from the drop in Guocheng Mining's long position.| Industrial Bank vs. Industrial and Commercial | Industrial Bank vs. China Construction Bank | Industrial Bank vs. Bank of China | Industrial Bank vs. Agricultural Bank of |
| Guocheng Mining vs. Harbin Air Conditioning | Guocheng Mining vs. Xinjiang Baodi Mining | Guocheng Mining vs. Gifore Agricultural Machinery | Guocheng Mining vs. Qijing Machinery |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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