Correlation Between China Publishing and Industrial Bank
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By analyzing existing cross correlation between China Publishing Media and Industrial Bank Co, you can compare the effects of market volatilities on China Publishing and Industrial Bank 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 Publishing with a short position of Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Industrial Bank.
Diversification Opportunities for China Publishing and Industrial Bank
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Industrial is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank and China Publishing 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 Publishing Media are associated (or correlated) with Industrial Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Bank has no effect on the direction of China Publishing i.e., China Publishing and Industrial Bank go up and down completely randomly.
Pair Corralation between China Publishing and Industrial Bank
Assuming the 90 days trading horizon China Publishing Media is expected to under-perform the Industrial Bank. In addition to that, China Publishing is 2.05 times more volatile than Industrial Bank Co. It trades about -0.58 of its total potential returns per unit of risk. Industrial Bank Co is currently generating about 0.28 per unit of volatility. If you would invest 1,822 in Industrial Bank Co on October 16, 2024 and sell it today you would earn a total of 107.00 from holding Industrial Bank Co or generate 5.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Publishing Media vs. Industrial Bank Co
Performance |
| Timeline |
| China Publishing Media |
| Industrial Bank |
China Publishing and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and Industrial Bank
The main advantage of trading using opposite China Publishing and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, Industrial Bank 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 Industrial Bank will offset losses from the drop in Industrial Bank's long position.| China Publishing vs. Wintao Communications Co | China Publishing vs. Guangxi Wuzhou Communications | China Publishing vs. Everjoy Health Group | China Publishing vs. Heren Health Co |
| Industrial Bank vs. Tongyu Communication | Industrial Bank vs. Allwin Telecommunication Co | Industrial Bank vs. Haima Automobile Group | Industrial Bank vs. Nanjing Putian Telecommunications |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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