Correlation Between Xiandai Investment and Agricultural Bank
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By analyzing existing cross correlation between Xiandai Investment Co and Agricultural Bank of, you can compare the effects of market volatilities on Xiandai Investment 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 Xiandai Investment with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Agricultural Bank.
Diversification Opportunities for Xiandai Investment and Agricultural Bank
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiandai and Agricultural is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Xiandai Investment 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 Xiandai Investment Co 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 Xiandai Investment i.e., Xiandai Investment and Agricultural Bank go up and down completely randomly.
Pair Corralation between Xiandai Investment and Agricultural Bank
Assuming the 90 days trading horizon Xiandai Investment is expected to generate 2.94 times less return on investment than Agricultural Bank. In addition to that, Xiandai Investment is 1.17 times more volatile than Agricultural Bank of. It trades about 0.03 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 12, 2024 and sell it today you would earn a total of 237.00 from holding Agricultural Bank of or generate 88.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. Agricultural Bank of
Performance |
| Timeline |
| Xiandai Investment |
| Agricultural Bank |
Xiandai Investment and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Agricultural Bank
The main advantage of trading using opposite Xiandai Investment and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment 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.| Xiandai Investment vs. Agricultural Bank of | Xiandai Investment vs. Industrial and Commercial | Xiandai Investment vs. Bank of China | Xiandai Investment vs. PetroChina Co Ltd |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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