Correlation Between Industrial Bank and Guilin Seamild
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By analyzing existing cross correlation between Industrial Bank Co and Guilin Seamild Foods, you can compare the effects of market volatilities on Industrial Bank and Guilin Seamild 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 Guilin Seamild. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Guilin Seamild.
Diversification Opportunities for Industrial Bank and Guilin Seamild
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Industrial and Guilin is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Guilin Seamild Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guilin Seamild Foods 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 Guilin Seamild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guilin Seamild Foods has no effect on the direction of Industrial Bank i.e., Industrial Bank and Guilin Seamild go up and down completely randomly.
Pair Corralation between Industrial Bank and Guilin Seamild
Assuming the 90 days trading horizon Industrial Bank is expected to generate 10.88 times less return on investment than Guilin Seamild. But when comparing it to its historical volatility, Industrial Bank Co is 2.43 times less risky than Guilin Seamild. It trades about 0.03 of its potential returns per unit of risk. Guilin Seamild Foods is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,263 in Guilin Seamild Foods on October 25, 2024 and sell it today you would earn a total of 328.00 from holding Guilin Seamild Foods or generate 25.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Bank Co vs. Guilin Seamild Foods
Performance |
| Timeline |
| Industrial Bank |
| Guilin Seamild Foods |
Industrial Bank and Guilin Seamild Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Guilin Seamild
The main advantage of trading using opposite Industrial Bank and Guilin Seamild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, Guilin Seamild 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 Guilin Seamild will offset losses from the drop in Guilin Seamild's long position.| Industrial Bank vs. Bank of China | Industrial Bank vs. Kweichow Moutai Co | Industrial Bank vs. PetroChina Co Ltd | Industrial Bank vs. Bank of Communications |
| Guilin Seamild vs. Agricultural Bank of | Guilin Seamild vs. Postal Savings Bank | Guilin Seamild vs. Bank of Communications | Guilin Seamild vs. China Merchants Bank |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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