Correlation Between Hangzhou Xili and Industrial Bank
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By analyzing existing cross correlation between Hangzhou Xili Intelligent and Industrial Bank Co, you can compare the effects of market volatilities on Hangzhou Xili 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 Hangzhou Xili with a short position of Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Xili and Industrial Bank.
Diversification Opportunities for Hangzhou Xili and Industrial Bank
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hangzhou and Industrial is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Xili Intelligent and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank and Hangzhou Xili 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 Hangzhou Xili Intelligent 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 Hangzhou Xili i.e., Hangzhou Xili and Industrial Bank go up and down completely randomly.
Pair Corralation between Hangzhou Xili and Industrial Bank
Assuming the 90 days trading horizon Hangzhou Xili Intelligent is expected to generate 2.12 times more return on investment than Industrial Bank. However, Hangzhou Xili is 2.12 times more volatile than Industrial Bank Co. It trades about 0.04 of its potential returns per unit of risk. Industrial Bank Co is currently generating about 0.03 per unit of risk. If you would invest 829.00 in Hangzhou Xili Intelligent on September 13, 2024 and sell it today you would earn a total of 356.00 from holding Hangzhou Xili Intelligent or generate 42.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Hangzhou Xili Intelligent vs. Industrial Bank Co
Performance |
| Timeline |
| Hangzhou Xili Intelligent |
| Industrial Bank |
Hangzhou Xili and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Xili and Industrial Bank
The main advantage of trading using opposite Hangzhou Xili and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Xili 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.| Hangzhou Xili vs. Industrial and Commercial | Hangzhou Xili vs. Agricultural Bank of | Hangzhou Xili vs. China Construction Bank | Hangzhou Xili vs. Bank of China |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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