Correlation Between Dongrui Food and Agricultural Bank
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By analyzing existing cross correlation between Dongrui Food Group and Agricultural Bank of, you can compare the effects of market volatilities on Dongrui Food 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 Dongrui Food with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongrui Food and Agricultural Bank.
Diversification Opportunities for Dongrui Food and Agricultural Bank
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dongrui and Agricultural is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Dongrui Food Group and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Dongrui Food 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 Dongrui Food Group 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 Dongrui Food i.e., Dongrui Food and Agricultural Bank go up and down completely randomly.
Pair Corralation between Dongrui Food and Agricultural Bank
Assuming the 90 days trading horizon Dongrui Food Group is expected to generate 2.03 times more return on investment than Agricultural Bank. However, Dongrui Food is 2.03 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 0.11 per unit of risk. If you would invest 1,613 in Dongrui Food Group on September 5, 2024 and sell it today you would earn a total of 84.00 from holding Dongrui Food Group or generate 5.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongrui Food Group vs. Agricultural Bank of
Performance |
| Timeline |
| Dongrui Food Group |
| Agricultural Bank |
Dongrui Food and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongrui Food and Agricultural Bank
The main advantage of trading using opposite Dongrui Food and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongrui Food 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.| Dongrui Food vs. Agricultural Bank of | Dongrui Food vs. Industrial and Commercial | Dongrui Food vs. Bank of China | Dongrui Food vs. China Construction Bank |
| Agricultural Bank vs. Dymatic Chemicals | Agricultural Bank vs. Sportsoul Co Ltd | Agricultural Bank vs. Do Fluoride Chemicals Co | Agricultural Bank vs. Hubeiyichang Transportation Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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