Correlation Between Agricultural Bank and Dongrui Food
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By analyzing existing cross correlation between Agricultural Bank of and Dongrui Food Group, you can compare the effects of market volatilities on Agricultural Bank and Dongrui Food 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 Dongrui Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Dongrui Food.
Diversification Opportunities for Agricultural Bank and Dongrui Food
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agricultural and Dongrui is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Dongrui Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongrui Food Group 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 Dongrui Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongrui Food Group has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Dongrui Food go up and down completely randomly.
Pair Corralation between Agricultural Bank and Dongrui Food
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.51 times more return on investment than Dongrui Food. However, Agricultural Bank of is 1.94 times less risky than Dongrui Food. It trades about 0.1 of its potential returns per unit of risk. Dongrui Food Group is currently generating about -0.04 per unit of risk. If you would invest 270.00 in Agricultural Bank of on September 5, 2024 and sell it today you would earn a total of 219.00 from holding Agricultural Bank of or generate 81.11% 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. Dongrui Food Group
Performance |
| Timeline |
| Agricultural Bank |
| Dongrui Food Group |
Agricultural Bank and Dongrui Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Dongrui Food
The main advantage of trading using opposite Agricultural Bank and Dongrui Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Dongrui Food 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 Dongrui Food will offset losses from the drop in Dongrui Food's long position.| Agricultural Bank vs. Dymatic Chemicals | Agricultural Bank vs. Sportsoul Co Ltd | Agricultural Bank vs. Do Fluoride Chemicals Co | Agricultural Bank vs. Hubeiyichang Transportation Group |
| Dongrui Food vs. Agricultural Bank of | Dongrui Food vs. Industrial and Commercial | Dongrui Food vs. Bank of China | Dongrui Food vs. China Construction Bank |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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