Correlation Between Industrial Bank and Puyang Huicheng
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By analyzing existing cross correlation between Industrial Bank Co and Puyang Huicheng Electronic, you can compare the effects of market volatilities on Industrial Bank and Puyang Huicheng 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 Puyang Huicheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Puyang Huicheng.
Diversification Opportunities for Industrial Bank and Puyang Huicheng
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Puyang is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Puyang Huicheng Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puyang Huicheng Elec 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 Puyang Huicheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puyang Huicheng Elec has no effect on the direction of Industrial Bank i.e., Industrial Bank and Puyang Huicheng go up and down completely randomly.
Pair Corralation between Industrial Bank and Puyang Huicheng
Assuming the 90 days trading horizon Industrial Bank Co is expected to generate 0.48 times more return on investment than Puyang Huicheng. However, Industrial Bank Co is 2.08 times less risky than Puyang Huicheng. It trades about 0.03 of its potential returns per unit of risk. Puyang Huicheng Electronic is currently generating about 0.0 per unit of risk. If you would invest 1,590 in Industrial Bank Co on September 1, 2024 and sell it today you would earn a total of 215.00 from holding Industrial Bank Co or generate 13.52% 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. Puyang Huicheng Electronic
Performance |
| Timeline |
| Industrial Bank |
| Puyang Huicheng Elec |
Industrial Bank and Puyang Huicheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Puyang Huicheng
The main advantage of trading using opposite Industrial Bank and Puyang Huicheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, Puyang Huicheng 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 Puyang Huicheng will offset losses from the drop in Puyang Huicheng's long position.| Industrial Bank vs. Kweichow Moutai Co | Industrial Bank vs. Shenzhen Mindray Bio Medical | Industrial Bank vs. Jiangsu Pacific Quartz | Industrial Bank vs. G bits Network Technology |
| Puyang Huicheng vs. Changchun Engley Automobile | Puyang Huicheng vs. Fiberhome Telecommunication Technologies | Puyang Huicheng vs. Haima Automobile Group | Puyang Huicheng vs. Suofeiya Home Collection |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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