Correlation Between Ningbo Jianan and Agricultural Bank
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By analyzing existing cross correlation between Ningbo Jianan Electronics and Agricultural Bank of, you can compare the effects of market volatilities on Ningbo Jianan 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 Ningbo Jianan with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jianan and Agricultural Bank.
Diversification Opportunities for Ningbo Jianan and Agricultural Bank
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ningbo and Agricultural is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jianan Electronics and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Ningbo Jianan 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 Ningbo Jianan Electronics 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 Ningbo Jianan i.e., Ningbo Jianan and Agricultural Bank go up and down completely randomly.
Pair Corralation between Ningbo Jianan and Agricultural Bank
Assuming the 90 days trading horizon Ningbo Jianan Electronics is expected to generate 2.57 times more return on investment than Agricultural Bank. However, Ningbo Jianan is 2.57 times more volatile than Agricultural Bank of. It trades about 0.06 of its potential returns per unit of risk. Agricultural Bank of is currently generating about 0.08 per unit of risk. If you would invest 1,948 in Ningbo Jianan Electronics on September 3, 2024 and sell it today you would earn a total of 438.00 from holding Ningbo Jianan Electronics or generate 22.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Jianan Electronics vs. Agricultural Bank of
Performance |
| Timeline |
| Ningbo Jianan Electronics |
| Agricultural Bank |
Ningbo Jianan and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jianan and Agricultural Bank
The main advantage of trading using opposite Ningbo Jianan and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jianan 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.| Ningbo Jianan vs. Agricultural Bank of | Ningbo Jianan vs. China Construction Bank | Ningbo Jianan vs. Postal Savings Bank | Ningbo Jianan vs. Bank of Communications |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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