Correlation Between Shandong Homey and Industrial Bank
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By analyzing existing cross correlation between Shandong Homey Aquatic and Industrial Bank Co, you can compare the effects of market volatilities on Shandong Homey 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 Shandong Homey with a short position of Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Homey and Industrial Bank.
Diversification Opportunities for Shandong Homey and Industrial Bank
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Industrial is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Homey Aquatic and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank and Shandong Homey 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 Shandong Homey Aquatic 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 Shandong Homey i.e., Shandong Homey and Industrial Bank go up and down completely randomly.
Pair Corralation between Shandong Homey and Industrial Bank
Assuming the 90 days trading horizon Shandong Homey is expected to generate 2.58 times less return on investment than Industrial Bank. In addition to that, Shandong Homey is 1.86 times more volatile than Industrial Bank Co. It trades about 0.01 of its total potential returns per unit of risk. Industrial Bank Co is currently generating about 0.03 per unit of volatility. If you would invest 1,696 in Industrial Bank Co on October 4, 2024 and sell it today you would earn a total of 220.00 from holding Industrial Bank Co or generate 12.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Shandong Homey Aquatic vs. Industrial Bank Co
Performance |
Timeline |
Shandong Homey Aquatic |
Industrial Bank |
Shandong Homey and Industrial Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shandong Homey and Industrial Bank
The main advantage of trading using opposite Shandong Homey and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Homey 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.Shandong Homey vs. Changchun UP Optotech | Shandong Homey vs. Western Metal Materials | Shandong Homey vs. Anhui Tongguan Copper | Shandong Homey vs. Digiwin Software Co |
Industrial Bank vs. Agricultural Bank of | Industrial Bank vs. Industrial and Commercial | Industrial Bank vs. Bank of China | Industrial Bank vs. China Construction Bank |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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