Correlation Between Industrial Bank and Shanghai Jin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Industrial Bank Co and Shanghai Jin Jiang, you can compare the effects of market volatilities on Industrial Bank and Shanghai Jin 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 Shanghai Jin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Shanghai Jin.
Diversification Opportunities for Industrial Bank and Shanghai Jin
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Shanghai is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Shanghai Jin Jiang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jin Jiang 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 Shanghai Jin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jin Jiang has no effect on the direction of Industrial Bank i.e., Industrial Bank and Shanghai Jin go up and down completely randomly.
Pair Corralation between Industrial Bank and Shanghai Jin
Assuming the 90 days trading horizon Industrial Bank Co is expected to generate 0.83 times more return on investment than Shanghai Jin. However, Industrial Bank Co is 1.2 times less risky than Shanghai Jin. It trades about 0.04 of its potential returns per unit of risk. Shanghai Jin Jiang is currently generating about 0.0 per unit of risk. If you would invest 1,622 in Industrial Bank Co on September 26, 2024 and sell it today you would earn a total of 276.00 from holding Industrial Bank Co or generate 17.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.66% |
| Values | Daily Returns |
Industrial Bank Co vs. Shanghai Jin Jiang
Performance |
| Timeline |
| Industrial Bank |
| Shanghai Jin Jiang |
Industrial Bank and Shanghai Jin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Bank and Shanghai Jin
The main advantage of trading using opposite Industrial Bank and Shanghai Jin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, Shanghai Jin 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 Shanghai Jin will offset losses from the drop in Shanghai Jin's long position.| Industrial Bank vs. Kweichow Moutai Co | Industrial Bank vs. Contemporary Amperex Technology | Industrial Bank vs. G bits Network Technology | Industrial Bank vs. BYD Co Ltd |
| Shanghai Jin vs. Bank of China | Shanghai Jin vs. Kweichow Moutai Co | Shanghai Jin vs. PetroChina Co Ltd | Shanghai Jin vs. Bank of Communications |
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.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |