Correlation Between China Zheshang and Inly Media
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By analyzing existing cross correlation between China Zheshang Bank and Inly Media Co, you can compare the effects of market volatilities on China Zheshang and Inly Media 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 China Zheshang with a short position of Inly Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Zheshang and Inly Media.
Diversification Opportunities for China Zheshang and Inly Media
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Inly is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding China Zheshang Bank and Inly Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inly Media and China Zheshang 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 China Zheshang Bank are associated (or correlated) with Inly Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inly Media has no effect on the direction of China Zheshang i.e., China Zheshang and Inly Media go up and down completely randomly.
Pair Corralation between China Zheshang and Inly Media
Assuming the 90 days trading horizon China Zheshang Bank is expected to generate 0.3 times more return on investment than Inly Media. However, China Zheshang Bank is 3.32 times less risky than Inly Media. It trades about 0.05 of its potential returns per unit of risk. Inly Media Co is currently generating about 0.0 per unit of risk. If you would invest 254.00 in China Zheshang Bank on September 4, 2024 and sell it today you would earn a total of 37.00 from holding China Zheshang Bank or generate 14.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Zheshang Bank vs. Inly Media Co
Performance |
| Timeline |
| China Zheshang Bank |
| Inly Media |
China Zheshang and Inly Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Zheshang and Inly Media
The main advantage of trading using opposite China Zheshang and Inly Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Zheshang position performs unexpectedly, Inly Media 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 Inly Media will offset losses from the drop in Inly Media's long position.| China Zheshang vs. Industrial and Commercial | China Zheshang vs. Agricultural Bank of | China Zheshang vs. China Construction Bank | China Zheshang vs. Bank of China |
| Inly Media vs. Jiangsu Yanghe Brewery | Inly Media vs. Maoming Petro Chemical Shihua | Inly Media vs. Chongqing Shunbo Aluminum | Inly Media vs. Miracll Chemicals 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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