Correlation Between Hunan Mendale and Agricultural Bank
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By analyzing existing cross correlation between Hunan Mendale Hometextile and Agricultural Bank of, you can compare the effects of market volatilities on Hunan Mendale 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 Hunan Mendale with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Mendale and Agricultural Bank.
Diversification Opportunities for Hunan Mendale and Agricultural Bank
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hunan and Agricultural is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Mendale Hometextile and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Hunan Mendale 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 Hunan Mendale Hometextile 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 Hunan Mendale i.e., Hunan Mendale and Agricultural Bank go up and down completely randomly.
Pair Corralation between Hunan Mendale and Agricultural Bank
Assuming the 90 days trading horizon Hunan Mendale Hometextile is expected to generate 5.0 times more return on investment than Agricultural Bank. However, Hunan Mendale is 5.0 times more volatile than Agricultural Bank of. It trades about 0.14 of its potential returns per unit of risk. Agricultural Bank of is currently generating about -0.12 per unit of risk. If you would invest 287.00 in Hunan Mendale Hometextile on October 23, 2024 and sell it today you would earn a total of 44.00 from holding Hunan Mendale Hometextile or generate 15.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Hunan Mendale Hometextile vs. Agricultural Bank of
Performance |
| Timeline |
| Hunan Mendale Hometextile |
| Agricultural Bank |
Hunan Mendale and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Mendale and Agricultural Bank
The main advantage of trading using opposite Hunan Mendale and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Mendale 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.| Hunan Mendale vs. Kingclean Electric Co | Hunan Mendale vs. Dhc Software Co | Hunan Mendale vs. Sinofibers Technology Co | Hunan Mendale vs. Shaanxi Meineng Clean |
| Agricultural Bank vs. China Asset Management | Agricultural Bank vs. Oppein Home Group | Agricultural Bank vs. Xiamen Goldenhome Co | Agricultural Bank vs. Hunan Mendale Hometextile |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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