Correlation Between Agricultural Bank and Lonkey Industrial
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By analyzing existing cross correlation between Agricultural Bank of and Lonkey Industrial Co, you can compare the effects of market volatilities on Agricultural Bank and Lonkey Industrial 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 Lonkey Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Lonkey Industrial.
Diversification Opportunities for Agricultural Bank and Lonkey Industrial
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Agricultural and Lonkey is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Lonkey Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lonkey Industrial 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 Lonkey Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lonkey Industrial has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Lonkey Industrial go up and down completely randomly.
Pair Corralation between Agricultural Bank and Lonkey Industrial
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 2.28 times less return on investment than Lonkey Industrial. But when comparing it to its historical volatility, Agricultural Bank of is 2.33 times less risky than Lonkey Industrial. It trades about 0.06 of its potential returns per unit of risk. Lonkey Industrial Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 314.00 in Lonkey Industrial Co on August 30, 2024 and sell it today you would earn a total of 8.00 from holding Lonkey Industrial Co or generate 2.55% 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. Lonkey Industrial Co
Performance |
| Timeline |
| Agricultural Bank |
| Lonkey Industrial |
Agricultural Bank and Lonkey Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Lonkey Industrial
The main advantage of trading using opposite Agricultural Bank and Lonkey Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Lonkey Industrial 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 Lonkey Industrial will offset losses from the drop in Lonkey Industrial's 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 |
| Lonkey Industrial vs. Industrial and Commercial | Lonkey Industrial vs. Agricultural Bank of | Lonkey Industrial vs. China Construction Bank | Lonkey Industrial 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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