Correlation Between Jiangyin Jianghua and Industrial Bank
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By analyzing existing cross correlation between Jiangyin Jianghua Microelectronics and Industrial Bank Co, you can compare the effects of market volatilities on Jiangyin Jianghua 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 Jiangyin Jianghua with a short position of Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangyin Jianghua and Industrial Bank.
Diversification Opportunities for Jiangyin Jianghua and Industrial Bank
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangyin and Industrial is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Jiangyin Jianghua Microelectro and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank and Jiangyin Jianghua 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 Jiangyin Jianghua Microelectronics 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 Jiangyin Jianghua i.e., Jiangyin Jianghua and Industrial Bank go up and down completely randomly.
Pair Corralation between Jiangyin Jianghua and Industrial Bank
Assuming the 90 days trading horizon Jiangyin Jianghua Microelectronics is expected to generate 4.84 times more return on investment than Industrial Bank. However, Jiangyin Jianghua is 4.84 times more volatile than Industrial Bank Co. It trades about 0.12 of its potential returns per unit of risk. Industrial Bank Co is currently generating about 0.11 per unit of risk. If you would invest 1,705 in Jiangyin Jianghua Microelectronics on September 13, 2024 and sell it today you would earn a total of 185.00 from holding Jiangyin Jianghua Microelectronics or generate 10.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangyin Jianghua Microelectro vs. Industrial Bank Co
Performance |
| Timeline |
| Jiangyin Jianghua |
| Industrial Bank |
Jiangyin Jianghua and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangyin Jianghua and Industrial Bank
The main advantage of trading using opposite Jiangyin Jianghua and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangyin Jianghua 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.| Jiangyin Jianghua vs. Nanjing Putian Telecommunications | Jiangyin Jianghua vs. Tianjin Realty Development | Jiangyin Jianghua vs. Kangyue Technology Co | Jiangyin Jianghua vs. Shenzhen Hifuture Electric |
| Industrial Bank vs. Industrial and Commercial | Industrial Bank vs. China Construction Bank | Industrial Bank vs. Bank of China | Industrial Bank vs. Agricultural Bank of |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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