Correlation Between Hangzhou Weiguang and Agricultural Bank
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By analyzing existing cross correlation between Hangzhou Weiguang Electronic and Agricultural Bank of, you can compare the effects of market volatilities on Hangzhou Weiguang 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 Hangzhou Weiguang with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Weiguang and Agricultural Bank.
Diversification Opportunities for Hangzhou Weiguang and Agricultural Bank
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hangzhou and Agricultural is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Weiguang Electronic and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Hangzhou Weiguang 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 Hangzhou Weiguang Electronic 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 Hangzhou Weiguang i.e., Hangzhou Weiguang and Agricultural Bank go up and down completely randomly.
Pair Corralation between Hangzhou Weiguang and Agricultural Bank
Assuming the 90 days trading horizon Hangzhou Weiguang is expected to generate 2.53 times less return on investment than Agricultural Bank. In addition to that, Hangzhou Weiguang is 2.05 times more volatile than Agricultural Bank of. It trades about 0.02 of its total potential returns per unit of risk. Agricultural Bank of is currently generating about 0.1 per unit of volatility. If you would invest 342.00 in Agricultural Bank of on September 12, 2024 and sell it today you would earn a total of 163.00 from holding Agricultural Bank of or generate 47.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Weiguang Electronic vs. Agricultural Bank of
Performance |
| Timeline |
| Hangzhou Weiguang |
| Agricultural Bank |
Hangzhou Weiguang and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Weiguang and Agricultural Bank
The main advantage of trading using opposite Hangzhou Weiguang and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Weiguang 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.| Hangzhou Weiguang vs. Agricultural Bank of | Hangzhou Weiguang vs. Industrial and Commercial | Hangzhou Weiguang vs. Bank of China | Hangzhou Weiguang vs. PetroChina Co Ltd |
| Agricultural Bank vs. China Petroleum Chemical | Agricultural Bank vs. PetroChina Co Ltd | Agricultural Bank vs. China Mobile Limited | Agricultural Bank vs. Industrial and Commercial |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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