Correlation Between Industrial Bank and Shenzhen Clou
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By analyzing existing cross correlation between Industrial Bank Co and Shenzhen Clou Electronics, you can compare the effects of market volatilities on Industrial Bank and Shenzhen Clou 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 Shenzhen Clou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Shenzhen Clou.
Diversification Opportunities for Industrial Bank and Shenzhen Clou
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Industrial and Shenzhen is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Shenzhen Clou Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Clou Electronics 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 Shenzhen Clou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Clou Electronics has no effect on the direction of Industrial Bank i.e., Industrial Bank and Shenzhen Clou go up and down completely randomly.
Pair Corralation between Industrial Bank and Shenzhen Clou
Assuming the 90 days trading horizon Industrial Bank Co is expected to generate 0.5 times more return on investment than Shenzhen Clou. However, Industrial Bank Co is 1.99 times less risky than Shenzhen Clou. It trades about 0.05 of its potential returns per unit of risk. Shenzhen Clou Electronics is currently generating about -0.04 per unit of risk. If you would invest 1,540 in Industrial Bank Co on November 30, 2024 and sell it today you would earn a total of 552.00 from holding Industrial Bank Co or generate 35.84% 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. Shenzhen Clou Electronics
Performance |
Timeline |
Industrial Bank |
Shenzhen Clou Electronics |
Industrial Bank and Shenzhen Clou Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Industrial Bank and Shenzhen Clou
The main advantage of trading using opposite Industrial Bank and Shenzhen Clou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, Shenzhen Clou 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 Shenzhen Clou will offset losses from the drop in Shenzhen Clou's long position.Industrial Bank vs. Jinsanjiang Silicon Material | ||
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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