Correlation Between Agricultural Bank and LianChuang Electronic
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By analyzing existing cross correlation between Agricultural Bank of and LianChuang Electronic Technology, you can compare the effects of market volatilities on Agricultural Bank and LianChuang Electronic 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 LianChuang Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and LianChuang Electronic.
Diversification Opportunities for Agricultural Bank and LianChuang Electronic
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Agricultural and LianChuang is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and LianChuang Electronic Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LianChuang Electronic 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 LianChuang Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LianChuang Electronic has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and LianChuang Electronic go up and down completely randomly.
Pair Corralation between Agricultural Bank and LianChuang Electronic
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.38 times more return on investment than LianChuang Electronic. However, Agricultural Bank of is 2.64 times less risky than LianChuang Electronic. It trades about 0.1 of its potential returns per unit of risk. LianChuang Electronic Technology is currently generating about 0.0 per unit of risk. If you would invest 271.00 in Agricultural Bank of on September 4, 2024 and sell it today you would earn a total of 211.00 from holding Agricultural Bank of or generate 77.86% 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. LianChuang Electronic Technolo
Performance |
| Timeline |
| Agricultural Bank |
| LianChuang Electronic |
Agricultural Bank and LianChuang Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and LianChuang Electronic
The main advantage of trading using opposite Agricultural Bank and LianChuang Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, LianChuang Electronic 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 LianChuang Electronic will offset losses from the drop in LianChuang Electronic'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 |
| LianChuang Electronic vs. PetroChina Co Ltd | LianChuang Electronic vs. China Mobile Limited | LianChuang Electronic vs. CNOOC Limited | LianChuang Electronic vs. Ping An Insurance |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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