Correlation Between Industrial Bank and Ziel Home
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By analyzing existing cross correlation between Industrial Bank Co and Ziel Home Furnishing, you can compare the effects of market volatilities on Industrial Bank and Ziel Home 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 Ziel Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Ziel Home.
Diversification Opportunities for Industrial Bank and Ziel Home
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Industrial and Ziel is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Ziel Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ziel Home Furnishing 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 Ziel Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ziel Home Furnishing has no effect on the direction of Industrial Bank i.e., Industrial Bank and Ziel Home go up and down completely randomly.
Pair Corralation between Industrial Bank and Ziel Home
Assuming the 90 days trading horizon Industrial Bank Co is expected to generate 0.54 times more return on investment than Ziel Home. However, Industrial Bank Co is 1.85 times less risky than Ziel Home. It trades about 0.25 of its potential returns per unit of risk. Ziel Home Furnishing is currently generating about -0.1 per unit of risk. If you would invest 1,805 in Industrial Bank Co on October 30, 2024 and sell it today you would earn a total of 226.00 from holding Industrial Bank Co or generate 12.52% 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. Ziel Home Furnishing
Performance |
| Timeline |
| Industrial Bank |
| Ziel Home Furnishing |
Industrial Bank and Ziel Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Ziel Home
The main advantage of trading using opposite Industrial Bank and Ziel Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, Ziel Home 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 Ziel Home will offset losses from the drop in Ziel Home's long position.| Industrial Bank vs. Nanya New Material | Industrial Bank vs. Hainan Mining Co | Industrial Bank vs. Konfoong Materials International | Industrial Bank vs. Hengerda New Materials |
| Ziel Home vs. AVIC Fund Management | Ziel Home vs. Chongqing Brewery Co | Ziel Home vs. Allmed Medical Products | Ziel Home vs. BrightGene Bio Medical |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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