Correlation Between Industrial Bank and Jinlong Machinery
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By analyzing existing cross correlation between Industrial Bank Co and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Industrial Bank and Jinlong Machinery 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 Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Jinlong Machinery.
Diversification Opportunities for Industrial Bank and Jinlong Machinery
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Industrial and Jinlong is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong Machinery 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 Jinlong Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinlong Machinery has no effect on the direction of Industrial Bank i.e., Industrial Bank and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Industrial Bank and Jinlong Machinery
Assuming the 90 days trading horizon Industrial Bank Co is expected to generate 0.27 times more return on investment than Jinlong Machinery. However, Industrial Bank Co is 3.76 times less risky than Jinlong Machinery. It trades about 0.03 of its potential returns per unit of risk. Jinlong Machinery Electronic is currently generating about -0.07 per unit of risk. If you would invest 1,914 in Industrial Bank Co on October 25, 2024 and sell it today you would earn a total of 37.00 from holding Industrial Bank Co or generate 1.93% 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. Jinlong Machinery Electronic
Performance |
| Timeline |
| Industrial Bank |
| Jinlong Machinery |
Industrial Bank and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Jinlong Machinery
The main advantage of trading using opposite Industrial Bank and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, Jinlong Machinery 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 Jinlong Machinery will offset losses from the drop in Jinlong Machinery'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 |
| Jinlong Machinery vs. Kweichow Moutai Co | Jinlong Machinery vs. Contemporary Amperex Technology | Jinlong Machinery vs. Beijing Roborock Technology | Jinlong Machinery vs. BYD Co Ltd |
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 CEOs Directory module to screen CEOs from public companies around the world.
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