Correlation Between Industrial Bank and Zhengzhou Yutong
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By analyzing existing cross correlation between Industrial Bank Co and Zhengzhou Yutong Bus, you can compare the effects of market volatilities on Industrial Bank and Zhengzhou Yutong 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 Zhengzhou Yutong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Zhengzhou Yutong.
Diversification Opportunities for Industrial Bank and Zhengzhou Yutong
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Industrial and Zhengzhou is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Zhengzhou Yutong Bus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengzhou Yutong Bus 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 Zhengzhou Yutong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengzhou Yutong Bus has no effect on the direction of Industrial Bank i.e., Industrial Bank and Zhengzhou Yutong go up and down completely randomly.
Pair Corralation between Industrial Bank and Zhengzhou Yutong
Assuming the 90 days trading horizon Industrial Bank is expected to generate 2.3 times less return on investment than Zhengzhou Yutong. But when comparing it to its historical volatility, Industrial Bank Co is 1.62 times less risky than Zhengzhou Yutong. It trades about 0.08 of its potential returns per unit of risk. Zhengzhou Yutong Bus is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,319 in Zhengzhou Yutong Bus on September 12, 2024 and sell it today you would earn a total of 1,076 from holding Zhengzhou Yutong Bus or generate 81.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.58% |
| Values | Daily Returns |
Industrial Bank Co vs. Zhengzhou Yutong Bus
Performance |
| Timeline |
| Industrial Bank |
| Zhengzhou Yutong Bus |
Industrial Bank and Zhengzhou Yutong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Zhengzhou Yutong
The main advantage of trading using opposite Industrial Bank and Zhengzhou Yutong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, Zhengzhou Yutong 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 Zhengzhou Yutong will offset losses from the drop in Zhengzhou Yutong's 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 |
| Zhengzhou Yutong vs. Ye Chiu Metal | Zhengzhou Yutong vs. Sinomach Automobile Co | Zhengzhou Yutong vs. Chengtun Mining Group | Zhengzhou Yutong vs. Lonkey Industrial 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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