Correlation Between Agricultural Bank and XJ Electric
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By analyzing existing cross correlation between Agricultural Bank of and XJ Electric Co, you can compare the effects of market volatilities on Agricultural Bank and XJ Electric 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 XJ Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and XJ Electric.
Diversification Opportunities for Agricultural Bank and XJ Electric
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agricultural and 000400 is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and XJ Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XJ Electric 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 XJ Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XJ Electric has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and XJ Electric go up and down completely randomly.
Pair Corralation between Agricultural Bank and XJ Electric
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.55 times more return on investment than XJ Electric. However, Agricultural Bank of is 1.83 times less risky than XJ Electric. It trades about -0.12 of its potential returns per unit of risk. XJ Electric Co is currently generating about -0.09 per unit of risk. If you would invest 519.00 in Agricultural Bank of on October 23, 2024 and sell it today you would lose (18.00) from holding Agricultural Bank of or give up 3.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. XJ Electric Co
Performance |
| Timeline |
| Agricultural Bank |
| XJ Electric |
Agricultural Bank and XJ Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and XJ Electric
The main advantage of trading using opposite Agricultural Bank and XJ Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, XJ Electric 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 XJ Electric will offset losses from the drop in XJ Electric's long position.| Agricultural Bank vs. China Asset Management | Agricultural Bank vs. Oppein Home Group | Agricultural Bank vs. Xiamen Goldenhome Co | Agricultural Bank vs. Hunan Mendale Hometextile |
| XJ Electric vs. Hangzhou Gisway Information | XJ Electric vs. ZJBC Information Technology | XJ Electric vs. Changjiang Publishing Media | XJ Electric vs. Xinjiang Sailing Information |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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