Correlation Between Agricultural Bank and ZJBC Information
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By analyzing existing cross correlation between Agricultural Bank of and ZJBC Information Technology, you can compare the effects of market volatilities on Agricultural Bank and ZJBC Information 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 ZJBC Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and ZJBC Information.
Diversification Opportunities for Agricultural Bank and ZJBC Information
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agricultural and ZJBC is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and ZJBC Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZJBC Information Tec 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 ZJBC Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZJBC Information Tec has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and ZJBC Information go up and down completely randomly.
Pair Corralation between Agricultural Bank and ZJBC Information
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 1.27 times less return on investment than ZJBC Information. But when comparing it to its historical volatility, Agricultural Bank of is 2.45 times less risky than ZJBC Information. It trades about 0.11 of its potential returns per unit of risk. ZJBC Information Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 198.00 in ZJBC Information Technology on September 4, 2024 and sell it today you would earn a total of 70.00 from holding ZJBC Information Technology or generate 35.35% 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. ZJBC Information Technology
Performance |
| Timeline |
| Agricultural Bank |
| ZJBC Information Tec |
Agricultural Bank and ZJBC Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and ZJBC Information
The main advantage of trading using opposite Agricultural Bank and ZJBC Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, ZJBC Information 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 ZJBC Information will offset losses from the drop in ZJBC Information's long position.| Agricultural Bank vs. Liaoning Chengda Biotechnology | Agricultural Bank vs. Harvest Fund Management | Agricultural Bank vs. Guangzhou Zhujiang Brewery | Agricultural Bank vs. CICC Fund Management |
| ZJBC Information vs. Industrial and Commercial | ZJBC Information vs. Agricultural Bank of | ZJBC Information vs. China Construction Bank | ZJBC Information 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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