Correlation Between Industrial Bank and Henan Shuanghui
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By analyzing existing cross correlation between Industrial Bank Co and Henan Shuanghui Investment, you can compare the effects of market volatilities on Industrial Bank and Henan Shuanghui 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 Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Henan Shuanghui.
Diversification Opportunities for Industrial Bank and Henan Shuanghui
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Industrial and Henan is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve 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 Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of Industrial Bank i.e., Industrial Bank and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Industrial Bank and Henan Shuanghui
Assuming the 90 days trading horizon Industrial Bank Co is expected to generate 1.13 times more return on investment than Henan Shuanghui. However, Industrial Bank is 1.13 times more volatile than Henan Shuanghui Investment. It trades about 0.19 of its potential returns per unit of risk. Henan Shuanghui Investment is currently generating about 0.05 per unit of risk. If you would invest 1,868 in Industrial Bank Co on October 11, 2024 and sell it today you would earn a total of 93.00 from holding Industrial Bank Co or generate 4.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Bank Co vs. Henan Shuanghui Investment
Performance |
| Timeline |
| Industrial Bank |
| Henan Shuanghui Inve |
Industrial Bank and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Henan Shuanghui
The main advantage of trading using opposite Industrial Bank and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| Industrial Bank vs. Gan Yuan Foods | Industrial Bank vs. Eastroc Beverage Group | Industrial Bank vs. Qingdao Foods Co | Industrial Bank vs. Great Sun Foods Co |
| Henan Shuanghui vs. Bank of Suzhou | Henan Shuanghui vs. Peoples Insurance of | Henan Shuanghui vs. Ningxia Younglight Chemicals | Henan Shuanghui vs. Industrial Bank 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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