Correlation Between Shenzhen SDG and Agricultural Bank
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By analyzing existing cross correlation between Shenzhen SDG Information and Agricultural Bank of, you can compare the effects of market volatilities on Shenzhen SDG and Agricultural 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 Shenzhen SDG with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Agricultural Bank.
Diversification Opportunities for Shenzhen SDG and Agricultural Bank
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Agricultural is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Shenzhen SDG 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 Shenzhen SDG Information are associated (or correlated) with Agricultural Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agricultural Bank has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and Agricultural Bank go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Agricultural Bank
Assuming the 90 days trading horizon Shenzhen SDG Information is expected to generate 1.84 times more return on investment than Agricultural Bank. However, Shenzhen SDG is 1.84 times more volatile than Agricultural Bank of. It trades about 0.28 of its potential returns per unit of risk. Agricultural Bank of is currently generating about 0.15 per unit of risk. If you would invest 407.00 in Shenzhen SDG Information on September 12, 2024 and sell it today you would earn a total of 201.00 from holding Shenzhen SDG Information or generate 49.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. Agricultural Bank of
Performance |
| Timeline |
| Shenzhen SDG Information |
| Agricultural Bank |
Shenzhen SDG and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Agricultural Bank
The main advantage of trading using opposite Shenzhen SDG and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, Agricultural 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 Agricultural Bank will offset losses from the drop in Agricultural Bank's long position.| Shenzhen SDG vs. Gansu Jiu Steel | Shenzhen SDG vs. Shandong Mining Machinery | Shenzhen SDG vs. Aba Chemicals Corp | Shenzhen SDG vs. BlueFocus Communication Group |
| Agricultural Bank vs. China Petroleum Chemical | Agricultural Bank vs. PetroChina Co Ltd | Agricultural Bank vs. China Mobile Limited | Agricultural Bank 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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