Correlation Between Luolai Home and Agricultural Bank
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By analyzing existing cross correlation between Luolai Home Textile and Agricultural Bank of, you can compare the effects of market volatilities on Luolai Home 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 Luolai Home with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luolai Home and Agricultural Bank.
Diversification Opportunities for Luolai Home and Agricultural Bank
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Luolai and Agricultural is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Luolai Home Textile and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Luolai Home 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 Luolai Home Textile 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 Luolai Home i.e., Luolai Home and Agricultural Bank go up and down completely randomly.
Pair Corralation between Luolai Home and Agricultural Bank
Assuming the 90 days trading horizon Luolai Home Textile is expected to generate 2.38 times more return on investment than Agricultural Bank. However, Luolai Home is 2.38 times more volatile than Agricultural Bank of. It trades about 0.25 of its potential returns per unit of risk. Agricultural Bank of is currently generating about 0.05 per unit of risk. If you would invest 726.00 in Luolai Home Textile on August 29, 2024 and sell it today you would earn a total of 97.00 from holding Luolai Home Textile or generate 13.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luolai Home Textile vs. Agricultural Bank of
Performance |
| Timeline |
| Luolai Home Textile |
| Agricultural Bank |
Luolai Home and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luolai Home and Agricultural Bank
The main advantage of trading using opposite Luolai Home and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luolai Home 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.| Luolai Home vs. Agricultural Bank of | Luolai Home vs. Industrial and Commercial | Luolai Home vs. Bank of China | Luolai Home vs. China Construction Bank |
| Agricultural Bank vs. Sinofibers Technology Co | Agricultural Bank vs. Anhui Jianghuai Automobile | Agricultural Bank vs. Uxi Unicomp Technology | Agricultural Bank vs. Jiujiang Shanshui Technology |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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