Correlation Between Industrial Bank and Vats Liquor
Specify exactly 2 symbols:
By analyzing existing cross correlation between Industrial Bank Co and Vats Liquor Chain, you can compare the effects of market volatilities on Industrial Bank and Vats Liquor 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 Vats Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Vats Liquor.
Diversification Opportunities for Industrial Bank and Vats Liquor
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Industrial and Vats is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Vats Liquor Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vats Liquor Chain 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 Vats Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vats Liquor Chain has no effect on the direction of Industrial Bank i.e., Industrial Bank and Vats Liquor go up and down completely randomly.
Pair Corralation between Industrial Bank and Vats Liquor
Assuming the 90 days trading horizon Industrial Bank Co is expected to generate 0.29 times more return on investment than Vats Liquor. However, Industrial Bank Co is 3.41 times less risky than Vats Liquor. It trades about 0.34 of its potential returns per unit of risk. Vats Liquor Chain is currently generating about -0.09 per unit of risk. If you would invest 1,822 in Industrial Bank Co on October 17, 2024 and sell it today you would earn a total of 139.00 from holding Industrial Bank Co or generate 7.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Bank Co vs. Vats Liquor Chain
Performance |
| Timeline |
| Industrial Bank |
| Vats Liquor Chain |
Industrial Bank and Vats Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Vats Liquor
The main advantage of trading using opposite Industrial Bank and Vats Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, Vats Liquor 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 Vats Liquor will offset losses from the drop in Vats Liquor's long position.The idea behind Industrial Bank Co and Vats Liquor Chain pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Vats Liquor vs. Fiberhome Telecommunication Technologies | Vats Liquor vs. Guangxi Wuzhou Communications | Vats Liquor vs. State Grid InformationCommunication | Vats Liquor vs. Mengtian Home Group |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |