Correlation Between Agricultural Bank and Guangdong Advertising
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By analyzing existing cross correlation between Agricultural Bank of and Guangdong Advertising Co, you can compare the effects of market volatilities on Agricultural Bank and Guangdong Advertising 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 Guangdong Advertising. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Guangdong Advertising.
Diversification Opportunities for Agricultural Bank and Guangdong Advertising
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Agricultural and Guangdong is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Guangdong Advertising Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Advertising 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 Guangdong Advertising. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Advertising has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Guangdong Advertising go up and down completely randomly.
Pair Corralation between Agricultural Bank and Guangdong Advertising
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 31.57 times less return on investment than Guangdong Advertising. But when comparing it to its historical volatility, Agricultural Bank of is 6.25 times less risky than Guangdong Advertising. It trades about 0.05 of its potential returns per unit of risk. Guangdong Advertising Co is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 620.00 in Guangdong Advertising Co on August 29, 2024 and sell it today you would earn a total of 234.00 from holding Guangdong Advertising Co or generate 37.74% 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. Guangdong Advertising Co
Performance |
| Timeline |
| Agricultural Bank |
| Guangdong Advertising |
Agricultural Bank and Guangdong Advertising Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Guangdong Advertising
The main advantage of trading using opposite Agricultural Bank and Guangdong Advertising positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Guangdong Advertising 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 Guangdong Advertising will offset losses from the drop in Guangdong Advertising's 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 |
| Guangdong Advertising vs. Industrial and Commercial | Guangdong Advertising vs. Agricultural Bank of | Guangdong Advertising vs. China Construction Bank | Guangdong Advertising 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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