Correlation Between Agricultural Bank and Oriental Times
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By analyzing existing cross correlation between Agricultural Bank of and Oriental Times Media, you can compare the effects of market volatilities on Agricultural Bank and Oriental Times 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 Oriental Times. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Oriental Times.
Diversification Opportunities for Agricultural Bank and Oriental Times
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Agricultural and Oriental is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Oriental Times Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Times Media 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 Oriental Times. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oriental Times Media has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Oriental Times go up and down completely randomly.
Pair Corralation between Agricultural Bank and Oriental Times
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.4 times more return on investment than Oriental Times. However, Agricultural Bank of is 2.49 times less risky than Oriental Times. It trades about 0.1 of its potential returns per unit of risk. Oriental Times Media is currently generating about 0.02 per unit of risk. If you would invest 272.00 in Agricultural Bank of on August 29, 2024 and sell it today you would earn a total of 209.00 from holding Agricultural Bank of or generate 76.84% 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. Oriental Times Media
Performance |
| Timeline |
| Agricultural Bank |
| Oriental Times Media |
Agricultural Bank and Oriental Times Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Oriental Times
The main advantage of trading using opposite Agricultural Bank and Oriental Times positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Oriental Times 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 Oriental Times will offset losses from the drop in Oriental Times' long position.| Agricultural Bank vs. Sinofibers Technology Co | Agricultural Bank vs. Anhui Jianghuai Automobile | Agricultural Bank vs. Uxi Unicomp Technology | Agricultural Bank vs. Jiujiang Shanshui Technology |
| Oriental Times vs. Allmed Medical Products | Oriental Times vs. Winner Medical Co | Oriental Times vs. Jafron Biomedical Co | Oriental Times vs. Cofoe Medical Technology |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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