Correlation Between Shenyang Blue and Agricultural Bank
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By analyzing existing cross correlation between Shenyang Blue Silver and Agricultural Bank of, you can compare the effects of market volatilities on Shenyang Blue 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 Shenyang Blue with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Blue and Agricultural Bank.
Diversification Opportunities for Shenyang Blue and Agricultural Bank
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenyang and Agricultural is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Blue Silver and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Shenyang Blue 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 Shenyang Blue Silver 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 Shenyang Blue i.e., Shenyang Blue and Agricultural Bank go up and down completely randomly.
Pair Corralation between Shenyang Blue and Agricultural Bank
Assuming the 90 days trading horizon Shenyang Blue Silver is expected to generate 4.2 times more return on investment than Agricultural Bank. However, Shenyang Blue is 4.2 times more volatile than Agricultural Bank of. It trades about 0.08 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 1,072 in Shenyang Blue Silver on September 12, 2024 and sell it today you would earn a total of 1,723 from holding Shenyang Blue Silver or generate 160.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Blue Silver vs. Agricultural Bank of
Performance |
| Timeline |
| Shenyang Blue Silver |
| Agricultural Bank |
Shenyang Blue and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Blue and Agricultural Bank
The main advantage of trading using opposite Shenyang Blue and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Blue 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.| Shenyang Blue vs. Agricultural Bank of | Shenyang Blue vs. Industrial and Commercial | Shenyang Blue vs. Bank of China | Shenyang Blue 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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