Correlation Between Agricultural Bank and Westone Information
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By analyzing existing cross correlation between Agricultural Bank of and Westone Information Industry, you can compare the effects of market volatilities on Agricultural Bank and Westone Information 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 Westone Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Westone Information.
Diversification Opportunities for Agricultural Bank and Westone Information
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agricultural and Westone is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Westone Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westone Information 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 Westone Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westone Information has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Westone Information go up and down completely randomly.
Pair Corralation between Agricultural Bank and Westone Information
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.46 times more return on investment than Westone Information. However, Agricultural Bank of is 2.18 times less risky than Westone Information. It trades about 0.08 of its potential returns per unit of risk. Westone Information Industry is currently generating about -0.03 per unit of risk. If you would invest 344.00 in Agricultural Bank of on September 4, 2024 and sell it today you would earn a total of 138.00 from holding Agricultural Bank of or generate 40.12% 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. Westone Information Industry
Performance |
| Timeline |
| Agricultural Bank |
| Westone Information |
Agricultural Bank and Westone Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Westone Information
The main advantage of trading using opposite Agricultural Bank and Westone Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Westone Information 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 Westone Information will offset losses from the drop in Westone Information'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 |
| Westone Information vs. Xiwang Foodstuffs Co | Westone Information vs. V V Food | Westone Information vs. Jinhui Liquor Co | Westone Information vs. Beijing Sanyuan Foods |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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