Correlation Between Agricultural Bank and Changchun High
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By analyzing existing cross correlation between Agricultural Bank of and Changchun High New, you can compare the effects of market volatilities on Agricultural Bank and Changchun High 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 Changchun High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Changchun High.
Diversification Opportunities for Agricultural Bank and Changchun High
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Agricultural and Changchun is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Changchun High New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun High New 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 Changchun High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun High New has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Changchun High go up and down completely randomly.
Pair Corralation between Agricultural Bank and Changchun High
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.56 times more return on investment than Changchun High. However, Agricultural Bank of is 1.78 times less risky than Changchun High. It trades about 0.1 of its potential returns per unit of risk. Changchun High New is currently generating about -0.03 per unit of risk. If you would invest 271.00 in Agricultural Bank of on August 27, 2024 and sell it today you would earn a total of 199.00 from holding Agricultural Bank of or generate 73.43% 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. Changchun High New
Performance |
| Timeline |
| Agricultural Bank |
| Changchun High New |
Agricultural Bank and Changchun High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Changchun High
The main advantage of trading using opposite Agricultural Bank and Changchun High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Changchun High 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 Changchun High will offset losses from the drop in Changchun High's long position.| Agricultural Bank vs. Bank of China | Agricultural Bank vs. PetroChina Co Ltd | Agricultural Bank vs. Ping An Insurance | Agricultural Bank vs. China Mobile Limited |
| Changchun High vs. Hengkang Medical Group | Changchun High vs. GKHT Medical Technology | Changchun High vs. Sunwave Communications Co | Changchun High vs. Ningbo Ligong Online |
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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