Correlation Between Agricultural Bank and Xian International
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By analyzing existing cross correlation between Agricultural Bank of and Xian International Medical, you can compare the effects of market volatilities on Agricultural Bank and Xian International 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 Xian International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Xian International.
Diversification Opportunities for Agricultural Bank and Xian International
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Agricultural and Xian is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Xian International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian International 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 Xian International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian International has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Xian International go up and down completely randomly.
Pair Corralation between Agricultural Bank and Xian International
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 6.49 times less return on investment than Xian International. But when comparing it to its historical volatility, Agricultural Bank of is 4.21 times less risky than Xian International. It trades about 0.11 of its potential returns per unit of risk. Xian International Medical is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 539.00 in Xian International Medical on September 4, 2024 and sell it today you would earn a total of 79.00 from holding Xian International Medical or generate 14.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Xian International Medical
Performance |
| Timeline |
| Agricultural Bank |
| Xian International |
Agricultural Bank and Xian International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Xian International
The main advantage of trading using opposite Agricultural Bank and Xian International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Xian International 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 Xian International will offset losses from the drop in Xian International's long position.| Agricultural Bank vs. Liaoning Chengda Biotechnology | Agricultural Bank vs. Harvest Fund Management | Agricultural Bank vs. Guangzhou Zhujiang Brewery | Agricultural Bank vs. CICC Fund Management |
| Xian International vs. Industrial and Commercial | Xian International vs. Agricultural Bank of | Xian International vs. China Construction Bank | Xian International 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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