Correlation Between Jiangsu Financial and Agricultural Bank
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Agricultural Bank of, you can compare the effects of market volatilities on Jiangsu Financial 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 Jiangsu Financial with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Agricultural Bank.
Diversification Opportunities for Jiangsu Financial and Agricultural Bank
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jiangsu and Agricultural is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Jiangsu Financial 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 Jiangsu Financial Leasing 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 Jiangsu Financial i.e., Jiangsu Financial and Agricultural Bank go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Agricultural Bank
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to under-perform the Agricultural Bank. In addition to that, Jiangsu Financial is 1.31 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 0.04 per unit of volatility. If you would invest 482.00 in Agricultural Bank of on October 25, 2024 and sell it today you would earn a total of 11.00 from holding Agricultural Bank of or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Agricultural Bank of
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Agricultural Bank |
Jiangsu Financial and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Agricultural Bank
The main advantage of trading using opposite Jiangsu Financial and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial 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.| Jiangsu Financial vs. Jiangsu Jinling Sports | Jiangsu Financial vs. Kidswant Children Products | Jiangsu Financial vs. Shenzhen Zqgame | Jiangsu Financial vs. Xinjiang Baodi Mining |
| Agricultural Bank vs. Bank of China | Agricultural Bank vs. Kweichow Moutai Co | Agricultural Bank vs. PetroChina Co Ltd | Agricultural Bank vs. Bank of Communications |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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