Correlation Between Guangzhou Dongfang and Agricultural Bank
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By analyzing existing cross correlation between Guangzhou Dongfang Hotel and Agricultural Bank of, you can compare the effects of market volatilities on Guangzhou Dongfang 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 Guangzhou Dongfang with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Dongfang and Agricultural Bank.
Diversification Opportunities for Guangzhou Dongfang and Agricultural Bank
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangzhou and Agricultural is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Dongfang Hotel and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Guangzhou Dongfang 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 Guangzhou Dongfang Hotel 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 Guangzhou Dongfang i.e., Guangzhou Dongfang and Agricultural Bank go up and down completely randomly.
Pair Corralation between Guangzhou Dongfang and Agricultural Bank
Assuming the 90 days trading horizon Guangzhou Dongfang Hotel is expected to under-perform the Agricultural Bank. In addition to that, Guangzhou Dongfang is 2.16 times more volatile than Agricultural Bank of. It trades about 0.0 of its total potential returns per unit of risk. Agricultural Bank of is currently generating about 0.1 per unit of volatility. If you would invest 283.00 in Agricultural Bank of on November 27, 2024 and sell it today you would earn a total of 231.00 from holding Agricultural Bank of or generate 81.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Dongfang Hotel vs. Agricultural Bank of
Performance |
| Timeline |
| Guangzhou Dongfang Hotel |
| Agricultural Bank |
Guangzhou Dongfang and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Dongfang and Agricultural Bank
The main advantage of trading using opposite Guangzhou Dongfang and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Dongfang 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.| Guangzhou Dongfang vs. PetroChina Co Ltd | Guangzhou Dongfang vs. Industrial and Commercial | Guangzhou Dongfang vs. China Petroleum Chemical | Guangzhou Dongfang vs. China Construction Bank |
| Agricultural Bank vs. Glodon Software Co | Agricultural Bank vs. Will Semiconductor Co | Agricultural Bank vs. Hubei Tech Semiconductors | Agricultural Bank vs. GigaDevice SemiconductorBeiji |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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