Correlation Between Dongnan Electronics and Agricultural Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dongnan Electronics Co and Agricultural Bank of, you can compare the effects of market volatilities on Dongnan Electronics 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 Dongnan Electronics with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongnan Electronics and Agricultural Bank.
Diversification Opportunities for Dongnan Electronics and Agricultural Bank
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dongnan and Agricultural is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Dongnan Electronics 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 Dongnan Electronics 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 Dongnan Electronics 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 Dongnan Electronics i.e., Dongnan Electronics and Agricultural Bank go up and down completely randomly.
Pair Corralation between Dongnan Electronics and Agricultural Bank
Assuming the 90 days trading horizon Dongnan Electronics Co is expected to under-perform the Agricultural Bank. In addition to that, Dongnan Electronics is 2.68 times more volatile than Agricultural Bank of. It trades about -0.05 of its total potential returns per unit of risk. Agricultural Bank of is currently generating about 0.33 per unit of volatility. If you would invest 465.00 in Agricultural Bank of on September 13, 2024 and sell it today you would earn a total of 32.00 from holding Agricultural Bank of or generate 6.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongnan Electronics Co vs. Agricultural Bank of
Performance |
| Timeline |
| Dongnan Electronics |
| Agricultural Bank |
Dongnan Electronics and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongnan Electronics and Agricultural Bank
The main advantage of trading using opposite Dongnan Electronics and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongnan Electronics 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.| Dongnan Electronics vs. Mingchen Health Co | Dongnan Electronics vs. Shenzhen Silver Basis | Dongnan Electronics vs. Lotus Health Group | Dongnan Electronics vs. Hangzhou Coco Healthcare |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |