Correlation Between Agricultural Bank and Bengang Steel
Specify exactly 2 symbols:
By analyzing existing cross correlation between Agricultural Bank of and Bengang Steel Plates, you can compare the effects of market volatilities on Agricultural Bank and Bengang Steel 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 Bengang Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Bengang Steel.
Diversification Opportunities for Agricultural Bank and Bengang Steel
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agricultural and Bengang is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Bengang Steel Plates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bengang Steel Plates 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 Bengang Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bengang Steel Plates has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Bengang Steel go up and down completely randomly.
Pair Corralation between Agricultural Bank and Bengang Steel
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.48 times more return on investment than Bengang Steel. However, Agricultural Bank of is 2.08 times less risky than Bengang Steel. It trades about 0.1 of its potential returns per unit of risk. Bengang Steel Plates is currently generating about -0.16 per unit of risk. If you would invest 471.00 in Agricultural Bank of on August 31, 2024 and sell it today you would earn a total of 10.00 from holding Agricultural Bank of or generate 2.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Bengang Steel Plates
Performance |
| Timeline |
| Agricultural Bank |
| Bengang Steel Plates |
Agricultural Bank and Bengang Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Bengang Steel
The main advantage of trading using opposite Agricultural Bank and Bengang Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Bengang Steel 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 Bengang Steel will offset losses from the drop in Bengang Steel's long position.| Agricultural Bank vs. China State Construction | Agricultural Bank vs. China Railway Group | Agricultural Bank vs. China Railway Construction | Agricultural Bank vs. China Mobile Limited |
| Bengang Steel vs. Gome Telecom Equipment | Bengang Steel vs. Shenzhen Kexin Communication | Bengang Steel vs. Wuhan Yangtze Communication | Bengang Steel vs. Sportsoul Co Ltd |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |