Correlation Between Agricultural Bank and 5I5j Holding
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By analyzing existing cross correlation between Agricultural Bank of and 5I5j Holding Group, you can compare the effects of market volatilities on Agricultural Bank and 5I5j Holding 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 5I5j Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and 5I5j Holding.
Diversification Opportunities for Agricultural Bank and 5I5j Holding
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agricultural and 5I5j is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and 5I5j Holding Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 5I5j Holding Group 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 5I5j Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 5I5j Holding Group has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and 5I5j Holding go up and down completely randomly.
Pair Corralation between Agricultural Bank and 5I5j Holding
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 1.31 times less return on investment than 5I5j Holding. But when comparing it to its historical volatility, Agricultural Bank of is 3.22 times less risky than 5I5j Holding. It trades about 0.1 of its potential returns per unit of risk. 5I5j Holding Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 250.00 in 5I5j Holding Group on September 26, 2024 and sell it today you would earn a total of 78.00 from holding 5I5j Holding Group or generate 31.2% 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. 5I5j Holding Group
Performance |
| Timeline |
| Agricultural Bank |
| 5I5j Holding Group |
Agricultural Bank and 5I5j Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and 5I5j Holding
The main advantage of trading using opposite Agricultural Bank and 5I5j Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, 5I5j Holding 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 5I5j Holding will offset losses from the drop in 5I5j Holding'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 |
| 5I5j Holding vs. Aofu Environmental Technology | 5I5j Holding vs. Penyao Environmental Protection | 5I5j Holding vs. Eit Environmental Development | 5I5j Holding vs. BTG Hotels Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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