Correlation Between Agricultural Bank and Shaanxi Meineng
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By analyzing existing cross correlation between Agricultural Bank of and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Agricultural Bank and Shaanxi Meineng 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 Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Shaanxi Meineng.
Diversification Opportunities for Agricultural Bank and Shaanxi Meineng
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agricultural and Shaanxi is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean 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 Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Agricultural Bank and Shaanxi Meineng
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 1.01 times less return on investment than Shaanxi Meineng. But when comparing it to its historical volatility, Agricultural Bank of is 1.56 times less risky than Shaanxi Meineng. It trades about 0.05 of its potential returns per unit of risk. Shaanxi Meineng Clean is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,277 in Shaanxi Meineng Clean on September 3, 2024 and sell it today you would earn a total of 105.00 from holding Shaanxi Meineng Clean or generate 8.22% 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. Shaanxi Meineng Clean
Performance |
| Timeline |
| Agricultural Bank |
| Shaanxi Meineng Clean |
Agricultural Bank and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Shaanxi Meineng
The main advantage of trading using opposite Agricultural Bank and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng'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 |
| Shaanxi Meineng vs. Industrial and Commercial | Shaanxi Meineng vs. Agricultural Bank of | Shaanxi Meineng vs. China Construction Bank | Shaanxi Meineng 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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