Correlation Between Shenzhen SDG and Agricultural Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen SDG Service and Agricultural Bank of, you can compare the effects of market volatilities on Shenzhen SDG 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 Shenzhen SDG with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Agricultural Bank.
Diversification Opportunities for Shenzhen SDG and Agricultural Bank
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shenzhen and Agricultural is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Service and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Shenzhen SDG 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 Shenzhen SDG Service 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 Shenzhen SDG i.e., Shenzhen SDG and Agricultural Bank go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Agricultural Bank
Assuming the 90 days trading horizon Shenzhen SDG Service is expected to under-perform the Agricultural Bank. In addition to that, Shenzhen SDG is 2.26 times more volatile than Agricultural Bank of. It trades about -0.14 of its total potential returns per unit of risk. Agricultural Bank of is currently generating about -0.16 per unit of volatility. If you would invest 531.00 in Agricultural Bank of on October 28, 2024 and sell it today you would lose (27.00) from holding Agricultural Bank of or give up 5.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Service vs. Agricultural Bank of
Performance |
| Timeline |
| Shenzhen SDG Service |
| Agricultural Bank |
Shenzhen SDG and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Agricultural Bank
The main advantage of trading using opposite Shenzhen SDG and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG 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.| Shenzhen SDG vs. Agricultural Bank of | Shenzhen SDG vs. Industrial and Commercial | Shenzhen SDG vs. Bank of China | Shenzhen SDG vs. China Construction Bank |
| Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. China Construction Bank | Agricultural Bank vs. Bank of China | Agricultural Bank vs. Postal Savings Bank |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |