Correlation Between Agricultural Bank and Zhongrun Resources
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By analyzing existing cross correlation between Agricultural Bank of and Zhongrun Resources Investment, you can compare the effects of market volatilities on Agricultural Bank and Zhongrun Resources 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 Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Zhongrun Resources.
Diversification Opportunities for Agricultural Bank and Zhongrun Resources
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Agricultural and Zhongrun is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources 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 Zhongrun Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongrun Resources has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Zhongrun Resources go up and down completely randomly.
Pair Corralation between Agricultural Bank and Zhongrun Resources
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.32 times more return on investment than Zhongrun Resources. However, Agricultural Bank of is 3.1 times less risky than Zhongrun Resources. It trades about 0.1 of its potential returns per unit of risk. Zhongrun Resources Investment is currently generating about 0.02 per unit of risk. If you would invest 271.00 in Agricultural Bank of on August 30, 2024 and sell it today you would earn a total of 214.00 from holding Agricultural Bank of or generate 78.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Agricultural Bank of vs. Zhongrun Resources Investment
Performance |
| Timeline |
| Agricultural Bank |
| Zhongrun Resources |
Agricultural Bank and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Zhongrun Resources
The main advantage of trading using opposite Agricultural Bank and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Zhongrun Resources 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 Zhongrun Resources will offset losses from the drop in Zhongrun Resources' long position.| Agricultural Bank vs. Kweichow Moutai Co | Agricultural Bank vs. Shenzhen Mindray Bio Medical | Agricultural Bank vs. Jiangsu Pacific Quartz | Agricultural Bank vs. G bits Network Technology |
| Zhongrun Resources vs. Industrial and Commercial | Zhongrun Resources vs. Agricultural Bank of | Zhongrun Resources vs. China Construction Bank | Zhongrun Resources 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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