Correlation Between Zhongjing Food and Agricultural Bank
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By analyzing existing cross correlation between Zhongjing Food Co and Agricultural Bank of, you can compare the effects of market volatilities on Zhongjing Food 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 Zhongjing Food with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongjing Food and Agricultural Bank.
Diversification Opportunities for Zhongjing Food and Agricultural Bank
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhongjing and Agricultural is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Zhongjing Food Co and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Zhongjing Food 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 Zhongjing Food Co 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 Zhongjing Food i.e., Zhongjing Food and Agricultural Bank go up and down completely randomly.
Pair Corralation between Zhongjing Food and Agricultural Bank
Assuming the 90 days trading horizon Zhongjing Food is expected to generate 1.6 times less return on investment than Agricultural Bank. In addition to that, Zhongjing Food is 1.22 times more volatile than Agricultural Bank of. It trades about 0.06 of its total potential returns per unit of risk. Agricultural Bank of is currently generating about 0.12 per unit of volatility. If you would invest 504.00 in Agricultural Bank of on November 4, 2024 and sell it today you would earn a total of 12.00 from holding Agricultural Bank of or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongjing Food Co vs. Agricultural Bank of
Performance |
| Timeline |
| Zhongjing Food |
| Agricultural Bank |
Zhongjing Food and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongjing Food and Agricultural Bank
The main advantage of trading using opposite Zhongjing Food and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongjing Food 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.| Zhongjing Food vs. Maxvision Technology Corp | Zhongjing Food vs. Strait Innovation Internet | Zhongjing Food vs. ROPEOK Technology Group | Zhongjing Food vs. Tianjin Hi Tech Development |
| Agricultural Bank vs. Olympic Circuit Technology | Agricultural Bank vs. Holitech Technology Co | Agricultural Bank vs. Xiamen Bank Co | Agricultural Bank vs. Peoples Insurance of |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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