Correlation Between Hang Xiao and Agricultural Bank
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By analyzing existing cross correlation between Hang Xiao Steel and Agricultural Bank of, you can compare the effects of market volatilities on Hang Xiao 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 Hang Xiao with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hang Xiao and Agricultural Bank.
Diversification Opportunities for Hang Xiao and Agricultural Bank
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hang and Agricultural is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hang Xiao Steel and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Hang Xiao 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 Hang Xiao Steel 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 Hang Xiao i.e., Hang Xiao and Agricultural Bank go up and down completely randomly.
Pair Corralation between Hang Xiao and Agricultural Bank
Assuming the 90 days trading horizon Hang Xiao Steel is expected to under-perform the Agricultural Bank. In addition to that, Hang Xiao is 1.64 times more volatile than Agricultural Bank of. It trades about -0.02 of its total potential returns per unit of risk. Agricultural Bank of is currently generating about 0.11 per unit of volatility. If you would invest 268.00 in Agricultural Bank of on September 12, 2024 and sell it today you would earn a total of 237.00 from holding Agricultural Bank of or generate 88.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hang Xiao Steel vs. Agricultural Bank of
Performance |
| Timeline |
| Hang Xiao Steel |
| Agricultural Bank |
Hang Xiao and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hang Xiao and Agricultural Bank
The main advantage of trading using opposite Hang Xiao and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hang Xiao 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.| Hang Xiao vs. Agricultural Bank of | Hang Xiao vs. Industrial and Commercial | Hang Xiao vs. Bank of China | Hang Xiao vs. PetroChina Co Ltd |
| Agricultural Bank vs. China Petroleum Chemical | Agricultural Bank vs. PetroChina Co Ltd | Agricultural Bank vs. China Mobile Limited | Agricultural Bank vs. Industrial and Commercial |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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