Correlation Between Agricultural Bank and Shenzhen Sunlord
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By analyzing existing cross correlation between Agricultural Bank of and Shenzhen Sunlord Electronics, you can compare the effects of market volatilities on Agricultural Bank and Shenzhen Sunlord 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 Shenzhen Sunlord. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Shenzhen Sunlord.
Diversification Opportunities for Agricultural Bank and Shenzhen Sunlord
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agricultural and Shenzhen is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Shenzhen Sunlord Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Sunlord Ele 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 Shenzhen Sunlord. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Sunlord Ele has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Shenzhen Sunlord go up and down completely randomly.
Pair Corralation between Agricultural Bank and Shenzhen Sunlord
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.62 times more return on investment than Shenzhen Sunlord. However, Agricultural Bank of is 1.61 times less risky than Shenzhen Sunlord. It trades about 0.4 of its potential returns per unit of risk. Shenzhen Sunlord Electronics is currently generating about 0.09 per unit of risk. If you would invest 483.00 in Agricultural Bank of on September 28, 2024 and sell it today you would earn a total of 47.00 from holding Agricultural Bank of or generate 9.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Agricultural Bank of vs. Shenzhen Sunlord Electronics
Performance |
| Timeline |
| Agricultural Bank |
| Shenzhen Sunlord Ele |
Agricultural Bank and Shenzhen Sunlord Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Shenzhen Sunlord
The main advantage of trading using opposite Agricultural Bank and Shenzhen Sunlord positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Shenzhen Sunlord 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 Shenzhen Sunlord will offset losses from the drop in Shenzhen Sunlord'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 |
| Shenzhen Sunlord vs. Industrial and Commercial | Shenzhen Sunlord vs. China Construction Bank | Shenzhen Sunlord vs. Agricultural Bank of | Shenzhen Sunlord 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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