Correlation Between Changshu Ruite and Agricultural Bank
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By analyzing existing cross correlation between Changshu Ruite Electric and Agricultural Bank of, you can compare the effects of market volatilities on Changshu Ruite 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 Changshu Ruite with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changshu Ruite and Agricultural Bank.
Diversification Opportunities for Changshu Ruite and Agricultural Bank
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Changshu and Agricultural is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Changshu Ruite Electric and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Changshu Ruite 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 Changshu Ruite Electric 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 Changshu Ruite i.e., Changshu Ruite and Agricultural Bank go up and down completely randomly.
Pair Corralation between Changshu Ruite and Agricultural Bank
Assuming the 90 days trading horizon Changshu Ruite Electric is expected to generate 3.11 times more return on investment than Agricultural Bank. However, Changshu Ruite is 3.11 times more volatile than Agricultural Bank of. It trades about 0.09 of its potential returns per unit of risk. Agricultural Bank of is currently generating about 0.01 per unit of risk. If you would invest 719.00 in Changshu Ruite Electric on January 14, 2025 and sell it today you would earn a total of 77.00 from holding Changshu Ruite Electric or generate 10.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changshu Ruite Electric vs. Agricultural Bank of
Performance |
| Timeline |
| Changshu Ruite Electric |
| Agricultural Bank |
Changshu Ruite and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changshu Ruite and Agricultural Bank
The main advantage of trading using opposite Changshu Ruite and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changshu Ruite 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.| Changshu Ruite vs. Yankershop Food Co | Changshu Ruite vs. Muyuan Foodstuff Co | Changshu Ruite vs. Panda Dairy Corp | Changshu Ruite vs. Beijing Lier High |
| Agricultural Bank vs. Ningbo Bohui Chemical | Agricultural Bank vs. Hainan Mining Co | Agricultural Bank vs. Wuxi Chemical Equipment | Agricultural Bank vs. Guangdong Advertising Co |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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