Correlation Between Industrial Bank and Xiangtan Electrochemical
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By analyzing existing cross correlation between Industrial Bank Co and Xiangtan Electrochemical Scientific, you can compare the effects of market volatilities on Industrial Bank and Xiangtan Electrochemical 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 Xiangtan Electrochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Xiangtan Electrochemical.
Diversification Opportunities for Industrial Bank and Xiangtan Electrochemical
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Xiangtan is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Xiangtan Electrochemical Scien in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangtan Electrochemical 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 Xiangtan Electrochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangtan Electrochemical has no effect on the direction of Industrial Bank i.e., Industrial Bank and Xiangtan Electrochemical go up and down completely randomly.
Pair Corralation between Industrial Bank and Xiangtan Electrochemical
Assuming the 90 days trading horizon Industrial Bank Co is expected to generate 0.51 times more return on investment than Xiangtan Electrochemical. However, Industrial Bank Co is 1.95 times less risky than Xiangtan Electrochemical. It trades about 0.03 of its potential returns per unit of risk. Xiangtan Electrochemical Scientific is currently generating about 0.01 per unit of risk. If you would invest 1,576 in Industrial Bank Co on September 2, 2024 and sell it today you would earn a total of 229.00 from holding Industrial Bank Co or generate 14.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Bank Co vs. Xiangtan Electrochemical Scien
Performance |
| Timeline |
| Industrial Bank |
| Xiangtan Electrochemical |
Industrial Bank and Xiangtan Electrochemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Xiangtan Electrochemical
The main advantage of trading using opposite Industrial Bank and Xiangtan Electrochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, Xiangtan Electrochemical 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 Xiangtan Electrochemical will offset losses from the drop in Xiangtan Electrochemical's long position.| Industrial Bank vs. OBiO Technology Corp | Industrial Bank vs. 360 Security Technology | Industrial Bank vs. Guangdong Liantai Environmental | Industrial Bank vs. Soyea Technology Co |
| Xiangtan Electrochemical vs. Zijin Mining Group | Xiangtan Electrochemical vs. Wanhua Chemical Group | Xiangtan Electrochemical vs. Baoshan Iron Steel | Xiangtan Electrochemical vs. Shandong Gold Mining |
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 Stocks Directory module to find actively traded stocks across global markets.
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