Correlation Between Guangxi Wuzhou and Agricultural Bank
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Agricultural Bank of, you can compare the effects of market volatilities on Guangxi Wuzhou 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 Guangxi Wuzhou with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Agricultural Bank.
Diversification Opportunities for Guangxi Wuzhou and Agricultural Bank
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangxi and Agricultural is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Guangxi Wuzhou 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 Guangxi Wuzhou Communications 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 Guangxi Wuzhou i.e., Guangxi Wuzhou and Agricultural Bank go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Agricultural Bank
Assuming the 90 days trading horizon Guangxi Wuzhou is expected to generate 1.59 times less return on investment than Agricultural Bank. In addition to that, Guangxi Wuzhou is 1.55 times more volatile than Agricultural Bank of. It trades about 0.13 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. Agricultural Bank of
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Agricultural Bank |
Guangxi Wuzhou and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Agricultural Bank
The main advantage of trading using opposite Guangxi Wuzhou and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou 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.| Guangxi Wuzhou vs. Kweichow Moutai Co | Guangxi Wuzhou vs. Shenzhen Mindray Bio Medical | Guangxi Wuzhou vs. Jiangsu Pacific Quartz | Guangxi Wuzhou vs. G bits Network 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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