Correlation Between Zoomlion Heavy and Agricultural Bank
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By analyzing existing cross correlation between Zoomlion Heavy Industry and Agricultural Bank of, you can compare the effects of market volatilities on Zoomlion Heavy 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 Zoomlion Heavy with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoomlion Heavy and Agricultural Bank.
Diversification Opportunities for Zoomlion Heavy and Agricultural Bank
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zoomlion and Agricultural is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Zoomlion Heavy Industry and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Zoomlion Heavy 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 Zoomlion Heavy Industry 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 Zoomlion Heavy i.e., Zoomlion Heavy and Agricultural Bank go up and down completely randomly.
Pair Corralation between Zoomlion Heavy and Agricultural Bank
Assuming the 90 days trading horizon Zoomlion Heavy is expected to generate 4.77 times less return on investment than Agricultural Bank. In addition to that, Zoomlion Heavy is 1.15 times more volatile than Agricultural Bank of. It trades about 0.07 of its total potential returns per unit of risk. Agricultural Bank of is currently generating about 0.4 per unit of volatility. If you would invest 483.00 in Agricultural Bank of on September 28, 2024 and sell it today you would earn a total of 47.00 from holding Agricultural Bank of or generate 9.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoomlion Heavy Industry vs. Agricultural Bank of
Performance |
| Timeline |
| Zoomlion Heavy Industry |
| Agricultural Bank |
Zoomlion Heavy and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoomlion Heavy and Agricultural Bank
The main advantage of trading using opposite Zoomlion Heavy and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoomlion Heavy 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.| Zoomlion Heavy vs. Industrial and Commercial | Zoomlion Heavy vs. Agricultural Bank of | Zoomlion Heavy vs. China Construction Bank | Zoomlion Heavy vs. Bank of China |
| Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. Kweichow Moutai Co | Agricultural Bank vs. China Mobile Limited | Agricultural 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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