Correlation Between Industrial Bank and Piotech
Specify exactly 2 symbols:
By analyzing existing cross correlation between Industrial Bank Co and Piotech Inc A, you can compare the effects of market volatilities on Industrial Bank and Piotech 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 Piotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Piotech.
Diversification Opportunities for Industrial Bank and Piotech
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Industrial and Piotech is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Piotech Inc A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piotech Inc A 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 Piotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piotech Inc A has no effect on the direction of Industrial Bank i.e., Industrial Bank and Piotech go up and down completely randomly.
Pair Corralation between Industrial Bank and Piotech
Assuming the 90 days trading horizon Industrial Bank Co is expected to generate 0.6 times more return on investment than Piotech. However, Industrial Bank Co is 1.68 times less risky than Piotech. It trades about 0.19 of its potential returns per unit of risk. Piotech Inc A is currently generating about -0.46 per unit of risk. If you would invest 1,854 in Industrial Bank Co on October 10, 2024 and sell it today you would earn a total of 89.00 from holding Industrial Bank Co or generate 4.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Bank Co vs. Piotech Inc A
Performance |
| Timeline |
| Industrial Bank |
| Piotech Inc A |
Industrial Bank and Piotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Piotech
The main advantage of trading using opposite Industrial Bank and Piotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, Piotech 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 Piotech will offset losses from the drop in Piotech's long position.| Industrial Bank vs. Shenzhen Noposion Agrochemicals | Industrial Bank vs. Shandong Polymer Biochemicals | Industrial Bank vs. Pengxin International Mining | Industrial Bank vs. China Mobile Limited |
| Piotech vs. Hunan Investment Group | Piotech vs. Nanjing Vishee Medical | Piotech vs. Kunwu Jiuding Investment | Piotech vs. Chison Medical Technologies |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |