Correlation Between Industrial Bank and Jiangyin Haida
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By analyzing existing cross correlation between Industrial Bank Co and Jiangyin Haida Rubber, you can compare the effects of market volatilities on Industrial Bank and Jiangyin Haida 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 Jiangyin Haida. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Jiangyin Haida.
Diversification Opportunities for Industrial Bank and Jiangyin Haida
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Industrial and Jiangyin is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Jiangyin Haida Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Haida Rubber 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 Jiangyin Haida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangyin Haida Rubber has no effect on the direction of Industrial Bank i.e., Industrial Bank and Jiangyin Haida go up and down completely randomly.
Pair Corralation between Industrial Bank and Jiangyin Haida
Assuming the 90 days trading horizon Industrial Bank Co is expected to generate 0.44 times more return on investment than Jiangyin Haida. However, Industrial Bank Co is 2.28 times less risky than Jiangyin Haida. It trades about 0.04 of its potential returns per unit of risk. Jiangyin Haida Rubber is currently generating about 0.0 per unit of risk. If you would invest 1,595 in Industrial Bank Co on October 26, 2024 and sell it today you would earn a total of 428.00 from holding Industrial Bank Co or generate 26.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Bank Co vs. Jiangyin Haida Rubber
Performance |
| Timeline |
| Industrial Bank |
| Jiangyin Haida Rubber |
Industrial Bank and Jiangyin Haida Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Jiangyin Haida
The main advantage of trading using opposite Industrial Bank and Jiangyin Haida positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, Jiangyin Haida 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 Jiangyin Haida will offset losses from the drop in Jiangyin Haida's long position.| Industrial Bank vs. Western Metal Materials | Industrial Bank vs. Tibet Huayu Mining | Industrial Bank vs. Longjian Road Bridge | Industrial Bank vs. Fujian Longzhou Transportation |
| Jiangyin Haida vs. Zijin Mining Group | Jiangyin Haida vs. Wanhua Chemical Group | Jiangyin Haida vs. Baoshan Iron Steel | Jiangyin Haida vs. Shandong Gold Mining |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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