Correlation Between Guangzhou Zhujiang and Agricultural Bank
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By analyzing existing cross correlation between Guangzhou Zhujiang Brewery and Agricultural Bank of, you can compare the effects of market volatilities on Guangzhou Zhujiang 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 Guangzhou Zhujiang with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Zhujiang and Agricultural Bank.
Diversification Opportunities for Guangzhou Zhujiang and Agricultural Bank
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Agricultural is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Zhujiang Brewery and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Guangzhou Zhujiang 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 Guangzhou Zhujiang Brewery 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 Guangzhou Zhujiang i.e., Guangzhou Zhujiang and Agricultural Bank go up and down completely randomly.
Pair Corralation between Guangzhou Zhujiang and Agricultural Bank
Assuming the 90 days trading horizon Guangzhou Zhujiang Brewery is expected to generate 1.7 times more return on investment than Agricultural Bank. However, Guangzhou Zhujiang is 1.7 times more volatile than Agricultural Bank of. It trades about 0.07 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 892.00 in Guangzhou Zhujiang Brewery on September 4, 2024 and sell it today you would earn a total of 20.00 from holding Guangzhou Zhujiang Brewery or generate 2.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Zhujiang Brewery vs. Agricultural Bank of
Performance |
| Timeline |
| Guangzhou Zhujiang |
| Agricultural Bank |
Guangzhou Zhujiang and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Zhujiang and Agricultural Bank
The main advantage of trading using opposite Guangzhou Zhujiang and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Zhujiang 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.| Guangzhou Zhujiang vs. Hefei Metalforming Mach | Guangzhou Zhujiang vs. Jiangsu Yanghe Brewery | Guangzhou Zhujiang vs. Ye Chiu Metal | Guangzhou Zhujiang vs. Liuzhou Chemical Industry |
| Agricultural Bank vs. Liaoning Chengda Biotechnology | Agricultural Bank vs. Harvest Fund Management | Agricultural Bank vs. Guangzhou Zhujiang Brewery | Agricultural Bank vs. CICC Fund Management |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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