Correlation Between Industrial Bank and Sunny Loan
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By analyzing existing cross correlation between Industrial Bank Co and Sunny Loan Top, you can compare the effects of market volatilities on Industrial Bank and Sunny Loan 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 Sunny Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Sunny Loan.
Diversification Opportunities for Industrial Bank and Sunny Loan
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Industrial and Sunny is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Sunny Loan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Loan Top 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 Sunny Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Loan Top has no effect on the direction of Industrial Bank i.e., Industrial Bank and Sunny Loan go up and down completely randomly.
Pair Corralation between Industrial Bank and Sunny Loan
Assuming the 90 days trading horizon Industrial Bank Co is expected to generate 0.37 times more return on investment than Sunny Loan. However, Industrial Bank Co is 2.7 times less risky than Sunny Loan. It trades about -0.23 of its potential returns per unit of risk. Sunny Loan Top is currently generating about -0.17 per unit of risk. If you would invest 1,902 in Industrial Bank Co on August 28, 2024 and sell it today you would lose (126.00) from holding Industrial Bank Co or give up 6.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Bank Co vs. Sunny Loan Top
Performance |
| Timeline |
| Industrial Bank |
| Sunny Loan Top |
Industrial Bank and Sunny Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Sunny Loan
The main advantage of trading using opposite Industrial Bank and Sunny Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, Sunny Loan 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 Sunny Loan will offset losses from the drop in Sunny Loan's long position.| Industrial Bank vs. Sino Platinum Metals Co | Industrial Bank vs. Shandong Hongchuang Aluminum | Industrial Bank vs. Rising Nonferrous Metals | Industrial Bank vs. Harbin Air Conditioning |
| Sunny Loan vs. Kweichow Moutai Co | Sunny Loan vs. Contemporary Amperex Technology | Sunny Loan vs. G bits Network Technology | Sunny Loan vs. BYD Co Ltd |
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 Stocks Directory module to find actively traded stocks across global markets.
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