Correlation Between Industrial Bank and Blue Sail
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By analyzing existing cross correlation between Industrial Bank Co and Blue Sail Medical, you can compare the effects of market volatilities on Industrial Bank and Blue Sail 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 Blue Sail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Blue Sail.
Diversification Opportunities for Industrial Bank and Blue Sail
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Industrial and Blue is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Blue Sail Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Sail Medical 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 Blue Sail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Sail Medical has no effect on the direction of Industrial Bank i.e., Industrial Bank and Blue Sail go up and down completely randomly.
Pair Corralation between Industrial Bank and Blue Sail
Assuming the 90 days trading horizon Industrial Bank Co is expected to generate 0.69 times more return on investment than Blue Sail. However, Industrial Bank Co is 1.46 times less risky than Blue Sail. It trades about 0.33 of its potential returns per unit of risk. Blue Sail Medical is currently generating about -0.39 per unit of risk. If you would invest 1,854 in Industrial Bank Co on October 20, 2024 and sell it today you would earn a total of 136.00 from holding Industrial Bank Co or generate 7.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Bank Co vs. Blue Sail Medical
Performance |
| Timeline |
| Industrial Bank |
| Blue Sail Medical |
Industrial Bank and Blue Sail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Blue Sail
The main advantage of trading using opposite Industrial Bank and Blue Sail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, Blue Sail 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 Blue Sail will offset losses from the drop in Blue Sail's long position.| Industrial Bank vs. Everdisplay Optronics Shanghai | Industrial Bank vs. Shenzhen AV Display Co | Industrial Bank vs. Shaanxi Meineng Clean | Industrial Bank vs. Jiangsu Jinling Sports |
| Blue Sail vs. Beijing Bewinner Communications | Blue Sail vs. Jilin Jlu Communication | Blue Sail vs. Nanjing Putian Telecommunications | Blue Sail vs. China Mobile Limited |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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