Correlation Between Industrial Bank and Huaxia Eye
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By analyzing existing cross correlation between Industrial Bank Co and Huaxia Eye Hospital, you can compare the effects of market volatilities on Industrial Bank and Huaxia Eye 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 Huaxia Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Huaxia Eye.
Diversification Opportunities for Industrial Bank and Huaxia Eye
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Industrial and Huaxia is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Huaxia Eye Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxia Eye Hospital 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 Huaxia Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxia Eye Hospital has no effect on the direction of Industrial Bank i.e., Industrial Bank and Huaxia Eye go up and down completely randomly.
Pair Corralation between Industrial Bank and Huaxia Eye
Assuming the 90 days trading horizon Industrial Bank Co is expected to generate 0.43 times more return on investment than Huaxia Eye. However, Industrial Bank Co is 2.32 times less risky than Huaxia Eye. It trades about 0.09 of its potential returns per unit of risk. Huaxia Eye Hospital is currently generating about -0.01 per unit of risk. If you would invest 1,678 in Industrial Bank Co on October 18, 2024 and sell it today you would earn a total of 302.00 from holding Industrial Bank Co or generate 18.0% 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. Huaxia Eye Hospital
Performance |
| Timeline |
| Industrial Bank |
| Huaxia Eye Hospital |
Industrial Bank and Huaxia Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Huaxia Eye
The main advantage of trading using opposite Industrial Bank and Huaxia Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, Huaxia Eye 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 Huaxia Eye will offset losses from the drop in Huaxia Eye's long position.| Industrial Bank vs. Hainan Haiqi Transportation | Industrial Bank vs. Dareway Software Co | Industrial Bank vs. Silkroad Visual Technology | Industrial Bank vs. Guotai Epoint Software |
| Huaxia Eye vs. China Satellite Communications | Huaxia Eye vs. Lecron Energy Saving | Huaxia Eye vs. Guangzhou Haige Communications | Huaxia Eye vs. Industrial Bank Co |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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