Correlation Between Industrial Bank and Guangzhou KingTeller
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By analyzing existing cross correlation between Industrial Bank Co and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Industrial Bank and Guangzhou KingTeller 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 Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Guangzhou KingTeller.
Diversification Opportunities for Industrial Bank and Guangzhou KingTeller
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Industrial and Guangzhou is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller 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 Guangzhou KingTeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KingTeller has no effect on the direction of Industrial Bank i.e., Industrial Bank and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Industrial Bank and Guangzhou KingTeller
Assuming the 90 days trading horizon Industrial Bank is expected to generate 1.86 times less return on investment than Guangzhou KingTeller. But when comparing it to its historical volatility, Industrial Bank Co is 2.59 times less risky than Guangzhou KingTeller. It trades about 0.08 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 334.00 in Guangzhou KingTeller Technology on October 12, 2024 and sell it today you would earn a total of 116.00 from holding Guangzhou KingTeller Technology or generate 34.73% 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. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Industrial Bank |
| Guangzhou KingTeller |
Industrial Bank and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Guangzhou KingTeller
The main advantage of trading using opposite Industrial Bank and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, Guangzhou KingTeller 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 Guangzhou KingTeller will offset losses from the drop in Guangzhou KingTeller'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 |
| Guangzhou KingTeller vs. Guangzhou Dongfang Hotel | Guangzhou KingTeller vs. TongFu Microelectronics Co | Guangzhou KingTeller vs. Anhui Deli Household | Guangzhou KingTeller vs. BTG Hotels Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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