Correlation Between Wonders Information and Agricultural Bank
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By analyzing existing cross correlation between Wonders Information and Agricultural Bank of, you can compare the effects of market volatilities on Wonders Information 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 Wonders Information with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonders Information and Agricultural Bank.
Diversification Opportunities for Wonders Information and Agricultural Bank
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wonders and Agricultural is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Wonders Information and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Wonders Information 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 Wonders Information 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 Wonders Information i.e., Wonders Information and Agricultural Bank go up and down completely randomly.
Pair Corralation between Wonders Information and Agricultural Bank
Assuming the 90 days trading horizon Wonders Information is expected to generate 3.41 times more return on investment than Agricultural Bank. However, Wonders Information is 3.41 times more volatile than Agricultural Bank of. It trades about 0.12 of its potential returns per unit of risk. Agricultural Bank of is currently generating about 0.1 per unit of risk. If you would invest 504.00 in Wonders Information on September 12, 2024 and sell it today you would earn a total of 440.00 from holding Wonders Information or generate 87.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wonders Information vs. Agricultural Bank of
Performance |
| Timeline |
| Wonders Information |
| Agricultural Bank |
Wonders Information and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonders Information and Agricultural Bank
The main advantage of trading using opposite Wonders Information and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonders Information 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.| Wonders Information vs. Gansu Jiu Steel | Wonders Information vs. Shandong Mining Machinery | Wonders Information vs. Aba Chemicals Corp | Wonders Information vs. BlueFocus Communication Group |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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