Correlation Between Industrial Bank and Shandong Sino
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By analyzing existing cross correlation between Industrial Bank Co and Shandong Sino Agri United, you can compare the effects of market volatilities on Industrial Bank and Shandong Sino 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 Shandong Sino. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Shandong Sino.
Diversification Opportunities for Industrial Bank and Shandong Sino
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Shandong is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Shandong Sino Agri United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sino Agri 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 Shandong Sino. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sino Agri has no effect on the direction of Industrial Bank i.e., Industrial Bank and Shandong Sino go up and down completely randomly.
Pair Corralation between Industrial Bank and Shandong Sino
Assuming the 90 days trading horizon Industrial Bank Co is expected to generate 0.44 times more return on investment than Shandong Sino. However, Industrial Bank Co is 2.29 times less risky than Shandong Sino. It trades about 0.02 of its potential returns per unit of risk. Shandong Sino Agri United is currently generating about 0.0 per unit of risk. If you would invest 1,646 in Industrial Bank Co on September 3, 2024 and sell it today you would earn a total of 159.00 from holding Industrial Bank Co or generate 9.66% 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. Shandong Sino Agri United
Performance |
| Timeline |
| Industrial Bank |
| Shandong Sino Agri |
Industrial Bank and Shandong Sino Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Shandong Sino
The main advantage of trading using opposite Industrial Bank and Shandong Sino positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, Shandong Sino 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 Shandong Sino will offset losses from the drop in Shandong Sino's long position.| Industrial Bank vs. Chongqing Road Bridge | Industrial Bank vs. Wuhan Xianglong Power | Industrial Bank vs. Empyrean Technology Co | Industrial Bank vs. Yuanjie Semiconductor Technology |
| Shandong Sino vs. Jiangsu Jinling Sports | Shandong Sino vs. Hainan Mining Co | Shandong Sino vs. Fujian Oriental Silver | Shandong Sino vs. JCHX Mining Management |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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