Correlation Between Industrial Bank and Beijing Jiaman
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By analyzing existing cross correlation between Industrial Bank Co and Beijing Jiaman Dress, you can compare the effects of market volatilities on Industrial Bank and Beijing Jiaman 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 Beijing Jiaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Beijing Jiaman.
Diversification Opportunities for Industrial Bank and Beijing Jiaman
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Industrial and Beijing is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Beijing Jiaman Dress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Jiaman Dress 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 Beijing Jiaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Jiaman Dress has no effect on the direction of Industrial Bank i.e., Industrial Bank and Beijing Jiaman go up and down completely randomly.
Pair Corralation between Industrial Bank and Beijing Jiaman
Assuming the 90 days trading horizon Industrial Bank Co is expected to generate 0.66 times more return on investment than Beijing Jiaman. However, Industrial Bank Co is 1.52 times less risky than Beijing Jiaman. It trades about 0.09 of its potential returns per unit of risk. Beijing Jiaman Dress is currently generating about 0.02 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. Beijing Jiaman Dress
Performance |
| Timeline |
| Industrial Bank |
| Beijing Jiaman Dress |
Industrial Bank and Beijing Jiaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Beijing Jiaman
The main advantage of trading using opposite Industrial Bank and Beijing Jiaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, Beijing Jiaman 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 Beijing Jiaman will offset losses from the drop in Beijing Jiaman'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 |
| Beijing Jiaman vs. Industrial Bank Co | Beijing Jiaman vs. Hua Xia Bank | Beijing Jiaman vs. Guosheng Financial Holding | Beijing Jiaman vs. Innovative Medical Management |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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