Correlation Between Agricultural Bank and Huagong Tech
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By analyzing existing cross correlation between Agricultural Bank of and Huagong Tech Co, you can compare the effects of market volatilities on Agricultural Bank and Huagong Tech 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 Huagong Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Huagong Tech.
Diversification Opportunities for Agricultural Bank and Huagong Tech
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agricultural and Huagong is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Huagong Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huagong Tech 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 Huagong Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huagong Tech has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Huagong Tech go up and down completely randomly.
Pair Corralation between Agricultural Bank and Huagong Tech
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 1.3 times less return on investment than Huagong Tech. But when comparing it to its historical volatility, Agricultural Bank of is 1.98 times less risky than Huagong Tech. It trades about 0.43 of its potential returns per unit of risk. Huagong Tech Co is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 3,510 in Huagong Tech Co on September 27, 2024 and sell it today you would earn a total of 493.00 from holding Huagong Tech Co or generate 14.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Agricultural Bank of vs. Huagong Tech Co
Performance |
| Timeline |
| Agricultural Bank |
| Huagong Tech |
Agricultural Bank and Huagong Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Huagong Tech
The main advantage of trading using opposite Agricultural Bank and Huagong Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Huagong Tech 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 Huagong Tech will offset losses from the drop in Huagong Tech's long position.| Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. Kweichow Moutai Co | Agricultural Bank vs. China Mobile Limited | Agricultural Bank vs. China Construction Bank |
| Huagong Tech vs. Industrial and Commercial | Huagong Tech vs. China Construction Bank | Huagong Tech vs. Agricultural Bank of | Huagong Tech 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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