Correlation Between Agricultural Bank and Asia Potash
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By analyzing existing cross correlation between Agricultural Bank of and Asia Potash International, you can compare the effects of market volatilities on Agricultural Bank and Asia Potash 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 Asia Potash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Asia Potash.
Diversification Opportunities for Agricultural Bank and Asia Potash
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Agricultural and Asia is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Asia Potash International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Potash International 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 Asia Potash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Potash International has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Asia Potash go up and down completely randomly.
Pair Corralation between Agricultural Bank and Asia Potash
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 1.22 times less return on investment than Asia Potash. But when comparing it to its historical volatility, Agricultural Bank of is 1.89 times less risky than Asia Potash. It trades about 0.08 of its potential returns per unit of risk. Asia Potash International is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,860 in Asia Potash International on September 3, 2024 and sell it today you would earn a total of 264.00 from holding Asia Potash International or generate 14.19% 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. Asia Potash International
Performance |
| Timeline |
| Agricultural Bank |
| Asia Potash International |
Agricultural Bank and Asia Potash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Asia Potash
The main advantage of trading using opposite Agricultural Bank and Asia Potash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Asia Potash 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 Asia Potash will offset losses from the drop in Asia Potash's long position.| Agricultural Bank vs. Kunwu Jiuding Investment | Agricultural Bank vs. Harbin Hatou Investment | Agricultural Bank vs. Dazhong Transportation Group | Agricultural Bank vs. Metro Investment Development |
| Asia Potash vs. Shandong Hongchuang Aluminum | Asia Potash vs. Shanghai Yanpu Metal | Asia Potash vs. Pengxin International Mining | Asia Potash vs. Western Metal Materials |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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