Correlation Between Hubei Forbon and Agricultural Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hubei Forbon Technology and Agricultural Bank of, you can compare the effects of market volatilities on Hubei Forbon 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 Hubei Forbon with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Forbon and Agricultural Bank.
Diversification Opportunities for Hubei Forbon and Agricultural Bank
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hubei and Agricultural is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Forbon Technology and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Hubei Forbon 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 Hubei Forbon Technology 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 Hubei Forbon i.e., Hubei Forbon and Agricultural Bank go up and down completely randomly.
Pair Corralation between Hubei Forbon and Agricultural Bank
Assuming the 90 days trading horizon Hubei Forbon is expected to generate 1.3 times less return on investment than Agricultural Bank. In addition to that, Hubei Forbon is 2.19 times more volatile than Agricultural Bank of. It trades about 0.04 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 270.00 in Agricultural Bank of on September 3, 2024 and sell it today you would earn a total of 211.00 from holding Agricultural Bank of or generate 78.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Forbon Technology vs. Agricultural Bank of
Performance |
| Timeline |
| Hubei Forbon Technology |
| Agricultural Bank |
Hubei Forbon and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Forbon and Agricultural Bank
The main advantage of trading using opposite Hubei Forbon and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Forbon 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.| Hubei Forbon vs. Zijin Mining Group | Hubei Forbon vs. Wanhua Chemical Group | Hubei Forbon vs. Baoshan Iron Steel | Hubei Forbon vs. Rongsheng Petrochemical Co |
| Agricultural Bank vs. Kunwu Jiuding Investment | Agricultural Bank vs. Harbin Hatou Investment | Agricultural Bank vs. Dazhong Transportation Group | Agricultural Bank vs. Metro Investment Development |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |