Correlation Between Industrial and HOB Biotech
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By analyzing existing cross correlation between Industrial and Commercial and HOB Biotech Group, you can compare the effects of market volatilities on Industrial and HOB Biotech 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 with a short position of HOB Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and HOB Biotech.
Diversification Opportunities for Industrial and HOB Biotech
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Industrial and HOB is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and HOB Biotech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOB Biotech Group and Industrial 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 and Commercial are associated (or correlated) with HOB Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOB Biotech Group has no effect on the direction of Industrial i.e., Industrial and HOB Biotech go up and down completely randomly.
Pair Corralation between Industrial and HOB Biotech
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.15 times more return on investment than HOB Biotech. However, Industrial and Commercial is 6.57 times less risky than HOB Biotech. It trades about 0.3 of its potential returns per unit of risk. HOB Biotech Group is currently generating about 0.01 per unit of risk. If you would invest 600.00 in Industrial and Commercial on September 13, 2024 and sell it today you would earn a total of 42.00 from holding Industrial and Commercial or generate 7.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. HOB Biotech Group
Performance |
| Timeline |
| Industrial and Commercial |
| HOB Biotech Group |
Industrial and HOB Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and HOB Biotech
The main advantage of trading using opposite Industrial and HOB Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, HOB Biotech 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 HOB Biotech will offset losses from the drop in HOB Biotech's long position.| Industrial vs. Allmed Medical Products | Industrial vs. Blue Sail Medical | Industrial vs. Yingde Greatchem Chemicals | Industrial vs. Zhongzhu Medical Holdings |
| HOB Biotech vs. Industrial and Commercial | HOB Biotech vs. Kweichow Moutai Co | HOB Biotech vs. Agricultural Bank of | HOB Biotech vs. China Mobile Limited |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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