Correlation Between Agricultural Bank and Zhejiang Yinlun
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By analyzing existing cross correlation between Agricultural Bank of and Zhejiang Yinlun Machinery, you can compare the effects of market volatilities on Agricultural Bank and Zhejiang Yinlun 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 Zhejiang Yinlun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Zhejiang Yinlun.
Diversification Opportunities for Agricultural Bank and Zhejiang Yinlun
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Agricultural and Zhejiang is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Zhejiang Yinlun Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yinlun Machinery 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 Zhejiang Yinlun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yinlun Machinery has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Zhejiang Yinlun go up and down completely randomly.
Pair Corralation between Agricultural Bank and Zhejiang Yinlun
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.44 times more return on investment than Zhejiang Yinlun. However, Agricultural Bank of is 2.26 times less risky than Zhejiang Yinlun. It trades about 0.09 of its potential returns per unit of risk. Zhejiang Yinlun Machinery is currently generating about -0.12 per unit of risk. If you would invest 473.00 in Agricultural Bank of on September 1, 2024 and sell it today you would earn a total of 8.00 from holding Agricultural Bank of or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Zhejiang Yinlun Machinery
Performance |
| Timeline |
| Agricultural Bank |
| Zhejiang Yinlun Machinery |
Agricultural Bank and Zhejiang Yinlun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Zhejiang Yinlun
The main advantage of trading using opposite Agricultural Bank and Zhejiang Yinlun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Zhejiang Yinlun 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 Zhejiang Yinlun will offset losses from the drop in Zhejiang Yinlun's long position.| Agricultural Bank vs. China State Construction | Agricultural Bank vs. China Railway Group | Agricultural Bank vs. China Railway Construction | Agricultural Bank vs. China Mobile Limited |
| Zhejiang Yinlun vs. BYD Co Ltd | Zhejiang Yinlun vs. China Mobile Limited | Zhejiang Yinlun vs. Agricultural Bank of | Zhejiang Yinlun vs. Industrial and Commercial |
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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