Correlation Between Dongguan Tarry and Agricultural Bank
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By analyzing existing cross correlation between Dongguan Tarry Electronics and Agricultural Bank of, you can compare the effects of market volatilities on Dongguan Tarry 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 Dongguan Tarry with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Tarry and Agricultural Bank.
Diversification Opportunities for Dongguan Tarry and Agricultural Bank
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongguan and Agricultural is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Tarry 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 Dongguan Tarry 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 Dongguan Tarry 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 Dongguan Tarry i.e., Dongguan Tarry and Agricultural Bank go up and down completely randomly.
Pair Corralation between Dongguan Tarry and Agricultural Bank
Assuming the 90 days trading horizon Dongguan Tarry Electronics is expected to generate 2.18 times more return on investment than Agricultural Bank. However, Dongguan Tarry is 2.18 times more volatile than Agricultural Bank of. It trades about 0.08 of its potential returns per unit of risk. Agricultural Bank of is currently generating about -0.02 per unit of risk. If you would invest 5,969 in Dongguan Tarry Electronics on September 13, 2024 and sell it today you would earn a total of 424.00 from holding Dongguan Tarry Electronics or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Tarry Electronics vs. Agricultural Bank of
Performance |
| Timeline |
| Dongguan Tarry Elect |
| Agricultural Bank |
Dongguan Tarry and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Tarry and Agricultural Bank
The main advantage of trading using opposite Dongguan Tarry and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Tarry 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.| Dongguan Tarry vs. Ming Yang Smart | Dongguan Tarry vs. 159681 | Dongguan Tarry vs. 159005 | Dongguan Tarry vs. Loctek Ergonomic Technology |
| Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. China Construction Bank | Agricultural Bank vs. Bank of China | Agricultural Bank vs. PetroChina Co Ltd |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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