Correlation Between Agricultural Bank and Zoomlion Heavy
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By analyzing existing cross correlation between Agricultural Bank of and Zoomlion Heavy Industry, you can compare the effects of market volatilities on Agricultural Bank and Zoomlion Heavy 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 Agricultural Bank with a short position of Zoomlion Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Zoomlion Heavy.
Diversification Opportunities for Agricultural Bank and Zoomlion Heavy
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agricultural and Zoomlion is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Zoomlion Heavy Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoomlion Heavy Industry and Agricultural Bank 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 Agricultural Bank of are associated (or correlated) with Zoomlion Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoomlion Heavy Industry has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Zoomlion Heavy go up and down completely randomly.
Pair Corralation between Agricultural Bank and Zoomlion Heavy
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.74 times more return on investment than Zoomlion Heavy. However, Agricultural Bank of is 1.34 times less risky than Zoomlion Heavy. It trades about 0.11 of its potential returns per unit of risk. Zoomlion Heavy Industry is currently generating about 0.05 per unit of risk. If you would invest 275.00 in Agricultural Bank of on September 26, 2024 and sell it today you would earn a total of 250.00 from holding Agricultural Bank of or generate 90.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Agricultural Bank of vs. Zoomlion Heavy Industry
Performance |
| Timeline |
| Agricultural Bank |
| Zoomlion Heavy Industry |
Agricultural Bank and Zoomlion Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Zoomlion Heavy
The main advantage of trading using opposite Agricultural Bank and Zoomlion Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Zoomlion Heavy 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 Zoomlion Heavy will offset losses from the drop in Zoomlion Heavy's long position.| Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. Kweichow Moutai Co | Agricultural Bank vs. China Mobile Limited | Agricultural Bank vs. China Construction Bank |
| Zoomlion Heavy vs. Industrial and Commercial | Zoomlion Heavy vs. Agricultural Bank of | Zoomlion Heavy vs. China Construction Bank | Zoomlion Heavy vs. Bank of China |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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