Correlation Between Agricultural Bank and Shantui Construction
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By analyzing existing cross correlation between Agricultural Bank of and Shantui Construction Machinery, you can compare the effects of market volatilities on Agricultural Bank and Shantui Construction 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 Shantui Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Shantui Construction.
Diversification Opportunities for Agricultural Bank and Shantui Construction
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agricultural and Shantui is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Shantui Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantui Construction 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 Shantui Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantui Construction has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Shantui Construction go up and down completely randomly.
Pair Corralation between Agricultural Bank and Shantui Construction
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 1.63 times less return on investment than Shantui Construction. But when comparing it to its historical volatility, Agricultural Bank of is 2.14 times less risky than Shantui Construction. It trades about 0.11 of its potential returns per unit of risk. Shantui Construction Machinery is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 398.00 in Shantui Construction Machinery on September 13, 2024 and sell it today you would earn a total of 589.00 from holding Shantui Construction Machinery or generate 147.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Shantui Construction Machinery
Performance |
| Timeline |
| Agricultural Bank |
| Shantui Construction |
Agricultural Bank and Shantui Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Shantui Construction
The main advantage of trading using opposite Agricultural Bank and Shantui Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Shantui Construction 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 Shantui Construction will offset losses from the drop in Shantui Construction's long position.| Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. China Construction Bank | Agricultural Bank vs. Bank of China | Agricultural Bank vs. PetroChina Co Ltd |
| Shantui Construction vs. Cultural Investment Holdings | Shantui Construction vs. Gome Telecom Equipment | Shantui Construction vs. Holitech Technology Co | Shantui Construction vs. Zotye Automobile Co |
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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