Correlation Between Beijing Seeyon and Industrial Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Seeyon Internet and Industrial Bank Co, you can compare the effects of market volatilities on Beijing Seeyon 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 Beijing Seeyon with a short position of Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Seeyon and Industrial Bank.
Diversification Opportunities for Beijing Seeyon and Industrial Bank
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beijing and Industrial is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Seeyon Internet and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank and Beijing Seeyon 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 Beijing Seeyon Internet 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 Beijing Seeyon i.e., Beijing Seeyon and Industrial Bank go up and down completely randomly.
Pair Corralation between Beijing Seeyon and Industrial Bank
Assuming the 90 days trading horizon Beijing Seeyon Internet is expected to under-perform the Industrial Bank. In addition to that, Beijing Seeyon is 2.95 times more volatile than Industrial Bank Co. It trades about -0.02 of its total potential returns per unit of risk. Industrial Bank Co is currently generating about 0.04 per unit of volatility. If you would invest 1,594 in Industrial Bank Co on November 9, 2024 and sell it today you would earn a total of 430.00 from holding Industrial Bank Co or generate 26.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Beijing Seeyon Internet vs. Industrial Bank Co
Performance |
Timeline |
Beijing Seeyon Internet |
Risk-Adjusted Performance
Weak
Weak | Strong |
Industrial Bank |
Risk-Adjusted Performance
Good
Weak | Strong |
Beijing Seeyon and Industrial Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing Seeyon and Industrial Bank
The main advantage of trading using opposite Beijing Seeyon and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Seeyon 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.The idea behind Beijing Seeyon Internet and Industrial Bank Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |