Correlation Between Fujian Newland and Agricultural Bank
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By analyzing existing cross correlation between Fujian Newland Computer and Agricultural Bank of, you can compare the effects of market volatilities on Fujian Newland 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 Fujian Newland with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Newland and Agricultural Bank.
Diversification Opportunities for Fujian Newland and Agricultural Bank
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fujian and Agricultural is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Newland Computer and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Fujian Newland 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 Fujian Newland Computer 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 Fujian Newland i.e., Fujian Newland and Agricultural Bank go up and down completely randomly.
Pair Corralation between Fujian Newland and Agricultural Bank
Assuming the 90 days trading horizon Fujian Newland Computer is expected to generate 4.19 times more return on investment than Agricultural Bank. However, Fujian Newland is 4.19 times more volatile than Agricultural Bank of. It trades about 0.17 of its potential returns per unit of risk. Agricultural Bank of is currently generating about 0.09 per unit of risk. If you would invest 1,877 in Fujian Newland Computer on September 1, 2024 and sell it today you would earn a total of 260.00 from holding Fujian Newland Computer or generate 13.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Newland Computer vs. Agricultural Bank of
Performance |
| Timeline |
| Fujian Newland Computer |
| Agricultural Bank |
Fujian Newland and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Newland and Agricultural Bank
The main advantage of trading using opposite Fujian Newland and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Newland 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.| Fujian Newland vs. Ming Yang Smart | Fujian Newland vs. 159681 | Fujian Newland vs. 159005 | Fujian Newland vs. Loctek Ergonomic Technology |
| Agricultural Bank vs. China State Construction | Agricultural Bank vs. China Railway Group | Agricultural Bank vs. China Railway Construction | Agricultural Bank vs. China Mobile Limited |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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