Correlation Between Datang HuaYin and Agricultural Bank
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By analyzing existing cross correlation between Datang HuaYin Electric and Agricultural Bank of, you can compare the effects of market volatilities on Datang HuaYin 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 Datang HuaYin with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datang HuaYin and Agricultural Bank.
Diversification Opportunities for Datang HuaYin and Agricultural Bank
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Datang and Agricultural is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Datang HuaYin Electric and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Datang HuaYin 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 Datang HuaYin Electric 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 Datang HuaYin i.e., Datang HuaYin and Agricultural Bank go up and down completely randomly.
Pair Corralation between Datang HuaYin and Agricultural Bank
Assuming the 90 days trading horizon Datang HuaYin Electric is expected to under-perform the Agricultural Bank. In addition to that, Datang HuaYin is 2.08 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 0.09 per unit of volatility. If you would invest 473.00 in Agricultural Bank of on September 1, 2024 and sell it today you would earn a total of 8.00 from holding Agricultural Bank of or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Datang HuaYin Electric vs. Agricultural Bank of
Performance |
| Timeline |
| Datang HuaYin Electric |
| Agricultural Bank |
Datang HuaYin and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datang HuaYin and Agricultural Bank
The main advantage of trading using opposite Datang HuaYin and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datang HuaYin 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.| Datang HuaYin vs. Chengdu Kanghua Biological | Datang HuaYin vs. Beijing Wantai Biological | Datang HuaYin vs. Suzhou Novoprotein Scientific | Datang HuaYin vs. Aluminum Corp of |
| Agricultural Bank vs. China State Construction | Agricultural Bank vs. China Railway Group | Agricultural Bank vs. China Railway Construction | Agricultural Bank vs. China Mobile Limited |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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