Correlation Between Chongqing Sokon and Agricultural Bank
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By analyzing existing cross correlation between Chongqing Sokon Ind and Agricultural Bank of, you can compare the effects of market volatilities on Chongqing Sokon 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 Chongqing Sokon with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Sokon and Agricultural Bank.
Diversification Opportunities for Chongqing Sokon and Agricultural Bank
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chongqing and Agricultural is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Sokon Ind and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Chongqing Sokon 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 Chongqing Sokon Ind 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 Chongqing Sokon i.e., Chongqing Sokon and Agricultural Bank go up and down completely randomly.
Pair Corralation between Chongqing Sokon and Agricultural Bank
Assuming the 90 days trading horizon Chongqing Sokon Ind is expected to generate 1.58 times more return on investment than Agricultural Bank. However, Chongqing Sokon is 1.58 times more volatile than Agricultural Bank of. It trades about 0.07 of its potential returns per unit of risk. Agricultural Bank of is currently generating about 0.01 per unit of risk. If you would invest 13,080 in Chongqing Sokon Ind on October 20, 2024 and sell it today you would earn a total of 427.00 from holding Chongqing Sokon Ind or generate 3.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Sokon Ind vs. Agricultural Bank of
Performance |
| Timeline |
| Chongqing Sokon Ind |
| Agricultural Bank |
Chongqing Sokon and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Sokon and Agricultural Bank
The main advantage of trading using opposite Chongqing Sokon and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Sokon 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.| Chongqing Sokon vs. Agricultural Bank of | Chongqing Sokon vs. Industrial and Commercial | Chongqing Sokon vs. Bank of China | Chongqing Sokon vs. PetroChina Co Ltd |
| Agricultural Bank vs. Jinlong Machinery Electronic | Agricultural Bank vs. JCHX Mining Management | Agricultural Bank vs. Xingguang Agricultural Mach | Agricultural Bank vs. Shantui Construction Machinery |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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