Correlation Between Shandong Sanyuan and Agricultural Bank
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By analyzing existing cross correlation between Shandong Sanyuan Biotechnology and Agricultural Bank of, you can compare the effects of market volatilities on Shandong Sanyuan 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 Shandong Sanyuan with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sanyuan and Agricultural Bank.
Diversification Opportunities for Shandong Sanyuan and Agricultural Bank
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Agricultural is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sanyuan Biotechnology and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Shandong Sanyuan 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 Shandong Sanyuan Biotechnology 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 Shandong Sanyuan i.e., Shandong Sanyuan and Agricultural Bank go up and down completely randomly.
Pair Corralation between Shandong Sanyuan and Agricultural Bank
Assuming the 90 days trading horizon Shandong Sanyuan Biotechnology is expected to under-perform the Agricultural Bank. In addition to that, Shandong Sanyuan is 1.61 times more volatile than Agricultural Bank of. It trades about -0.07 of its total potential returns per unit of risk. Agricultural Bank of is currently generating about 0.09 per unit of volatility. If you would invest 476.00 in Agricultural Bank of on October 26, 2024 and sell it today you would earn a total of 30.00 from holding Agricultural Bank of or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sanyuan Biotechnology vs. Agricultural Bank of
Performance |
| Timeline |
| Shandong Sanyuan Bio |
| Agricultural Bank |
Shandong Sanyuan and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sanyuan and Agricultural Bank
The main advantage of trading using opposite Shandong Sanyuan and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sanyuan 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.| Shandong Sanyuan vs. Quectel Wireless Solutions | Shandong Sanyuan vs. Mingchen Health Co | Shandong Sanyuan vs. Nanjing Putian Telecommunications | Shandong Sanyuan vs. Heren Health Co |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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