Correlation Between Guangdong Electric and Agricultural Bank
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By analyzing existing cross correlation between Guangdong Electric Power and Agricultural Bank of, you can compare the effects of market volatilities on Guangdong Electric 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 Guangdong Electric with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Electric and Agricultural Bank.
Diversification Opportunities for Guangdong Electric and Agricultural Bank
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guangdong and Agricultural is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Electric Power and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Guangdong Electric 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 Guangdong Electric Power 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 Guangdong Electric i.e., Guangdong Electric and Agricultural Bank go up and down completely randomly.
Pair Corralation between Guangdong Electric and Agricultural Bank
Assuming the 90 days trading horizon Guangdong Electric Power is expected to under-perform the Agricultural Bank. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Electric Power is 1.37 times less risky than Agricultural Bank. The stock trades about -0.01 of its potential returns per unit of risk. The Agricultural Bank of is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 274.00 in Agricultural Bank of on October 16, 2024 and sell it today you would earn a total of 229.00 from holding Agricultural Bank of or generate 83.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Electric Power vs. Agricultural Bank of
Performance |
| Timeline |
| Guangdong Electric Power |
| Agricultural Bank |
Guangdong Electric and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Electric and Agricultural Bank
The main advantage of trading using opposite Guangdong Electric and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Electric 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.| Guangdong Electric vs. Everdisplay Optronics Shanghai | Guangdong Electric vs. Lontium Semiconductor Corp | Guangdong Electric vs. GRINM Semiconductor Materials | Guangdong Electric vs. Chongqing Brewery Co |
| Agricultural Bank vs. Shenzhen Noposion Agrochemicals | Agricultural Bank vs. Sinofibers Technology Co | Agricultural Bank vs. Digiwin Software Co | Agricultural Bank vs. Ningxia Younglight Chemicals |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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