Correlation Between Asia Potash and Agricultural Bank
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By analyzing existing cross correlation between Asia Potash International and Agricultural Bank of, you can compare the effects of market volatilities on Asia Potash 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 Asia Potash with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Potash and Agricultural Bank.
Diversification Opportunities for Asia Potash and Agricultural Bank
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Asia and Agricultural is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Asia Potash International and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Asia Potash 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 Asia Potash International 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 Asia Potash i.e., Asia Potash and Agricultural Bank go up and down completely randomly.
Pair Corralation between Asia Potash and Agricultural Bank
Assuming the 90 days trading horizon Asia Potash International is expected to generate 2.05 times more return on investment than Agricultural Bank. However, Asia Potash is 2.05 times more volatile than Agricultural Bank of. It trades about 0.13 of its potential returns per unit of risk. Agricultural Bank of is currently generating about 0.03 per unit of risk. If you would invest 1,685 in Asia Potash International on September 2, 2024 and sell it today you would earn a total of 401.00 from holding Asia Potash International or generate 23.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Potash International vs. Agricultural Bank of
Performance |
| Timeline |
| Asia Potash International |
| Agricultural Bank |
Asia Potash and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Potash and Agricultural Bank
The main advantage of trading using opposite Asia Potash and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Potash 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.| Asia Potash vs. Agricultural Bank of | Asia Potash vs. Industrial and Commercial | Asia Potash vs. Bank of China | Asia Potash vs. PetroChina Co Ltd |
| Agricultural Bank vs. Fujian Longzhou Transportation | Agricultural Bank vs. Xinjiang Baodi Mining | Agricultural Bank vs. Shengda Mining Co | Agricultural Bank vs. Western Metal Materials |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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