Correlation Between Industrial Bank and CITIC Securities
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By analyzing existing cross correlation between Industrial Bank Co and CITIC Securities Co, you can compare the effects of market volatilities on Industrial Bank and CITIC Securities 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 CITIC Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and CITIC Securities.
Diversification Opportunities for Industrial Bank and CITIC Securities
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and CITIC is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and CITIC Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Securities 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 CITIC Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Securities has no effect on the direction of Industrial Bank i.e., Industrial Bank and CITIC Securities go up and down completely randomly.
Pair Corralation between Industrial Bank and CITIC Securities
Assuming the 90 days trading horizon Industrial Bank Co is expected to generate 0.52 times more return on investment than CITIC Securities. However, Industrial Bank Co is 1.91 times less risky than CITIC Securities. It trades about 0.07 of its potential returns per unit of risk. CITIC Securities Co is currently generating about -0.22 per unit of risk. If you would invest 1,838 in Industrial Bank Co on September 12, 2024 and sell it today you would earn a total of 30.00 from holding Industrial Bank Co or generate 1.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Industrial Bank Co vs. CITIC Securities Co
Performance |
| Timeline |
| Industrial Bank |
| CITIC Securities |
Industrial Bank and CITIC Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and CITIC Securities
The main advantage of trading using opposite Industrial Bank and CITIC Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, CITIC Securities 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 CITIC Securities will offset losses from the drop in CITIC Securities' long position.| Industrial Bank vs. China Petroleum Chemical | Industrial Bank vs. PetroChina Co Ltd | Industrial Bank vs. China Mobile Limited | Industrial Bank vs. Industrial and Commercial |
| CITIC Securities vs. Kuang Chi Technologies | CITIC Securities vs. Cicc Fund Management | CITIC Securities vs. CICC Fund Management | CITIC Securities vs. FSPG Hi Tech 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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