Correlation Between Shenwu Energy and Agricultural Bank
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By analyzing existing cross correlation between Shenwu Energy Saving and Agricultural Bank of, you can compare the effects of market volatilities on Shenwu Energy 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 Shenwu Energy with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwu Energy and Agricultural Bank.
Diversification Opportunities for Shenwu Energy and Agricultural Bank
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenwu and Agricultural is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Shenwu Energy Saving and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Shenwu Energy 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 Shenwu Energy Saving 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 Shenwu Energy i.e., Shenwu Energy and Agricultural Bank go up and down completely randomly.
Pair Corralation between Shenwu Energy and Agricultural Bank
Assuming the 90 days trading horizon Shenwu Energy is expected to generate 127.82 times less return on investment than Agricultural Bank. In addition to that, Shenwu Energy is 2.63 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 0.11 per unit of volatility. If you would invest 268.00 in Agricultural Bank of on September 14, 2024 and sell it today you would earn a total of 235.00 from holding Agricultural Bank of or generate 87.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenwu Energy Saving vs. Agricultural Bank of
Performance |
| Timeline |
| Shenwu Energy Saving |
| Agricultural Bank |
Shenwu Energy and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenwu Energy and Agricultural Bank
The main advantage of trading using opposite Shenwu Energy and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwu Energy 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.| Shenwu Energy vs. Lutian Machinery Co | Shenwu Energy vs. China Longyuan Power | Shenwu Energy vs. PetroChina Co Ltd | Shenwu Energy vs. Bank of China |
| Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. China Construction Bank | Agricultural Bank vs. Bank of China | Agricultural Bank vs. PetroChina Co Ltd |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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