Correlation Between Industrial Bank and Bank of Qingdao
Specify exactly 2 symbols:
By analyzing existing cross correlation between Industrial Bank Co and Bank of Qingdao, you can compare the effects of market volatilities on Industrial Bank and Bank of Qingdao 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 Industrial Bank with a short position of Bank of Qingdao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Bank and Bank of Qingdao.
Diversification Opportunities for Industrial Bank and Bank of Qingdao
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Bank is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Bank Co and Bank of Qingdao in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Qingdao and Industrial Bank 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 Industrial Bank Co are associated (or correlated) with Bank of Qingdao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Qingdao has no effect on the direction of Industrial Bank i.e., Industrial Bank and Bank of Qingdao go up and down completely randomly.
Pair Corralation between Industrial Bank and Bank of Qingdao
Assuming the 90 days trading horizon Industrial Bank is expected to generate 1.59 times less return on investment than Bank of Qingdao. But when comparing it to its historical volatility, Industrial Bank Co is 1.0 times less risky than Bank of Qingdao. It trades about 0.04 of its potential returns per unit of risk. Bank of Qingdao is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 337.00 in Bank of Qingdao on September 26, 2024 and sell it today you would earn a total of 47.00 from holding Bank of Qingdao or generate 13.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 99.18% |
Values | Daily Returns |
Industrial Bank Co vs. Bank of Qingdao
Performance |
Timeline |
Industrial Bank |
Bank of Qingdao |
Industrial Bank and Bank of Qingdao Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Industrial Bank and Bank of Qingdao
The main advantage of trading using opposite Industrial Bank and Bank of Qingdao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Bank position performs unexpectedly, Bank of Qingdao 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 Bank of Qingdao will offset losses from the drop in Bank of Qingdao's long position.Industrial Bank vs. Kweichow Moutai Co | Industrial Bank vs. Contemporary Amperex Technology | Industrial Bank vs. G bits Network Technology | Industrial Bank vs. BYD Co Ltd |
Bank of Qingdao vs. BYD Co Ltd | Bank of Qingdao vs. China Mobile Limited | Bank of Qingdao vs. Agricultural Bank of | Bank of Qingdao vs. Industrial and Commercial |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Share Portfolio Track or share privately all of your investments from the convenience of any device |