Correlation Between Agricultural Bank and Guangzhou Zhujiang
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By analyzing existing cross correlation between Agricultural Bank of and Guangzhou Zhujiang Brewery, you can compare the effects of market volatilities on Agricultural Bank and Guangzhou Zhujiang 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 Guangzhou Zhujiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Guangzhou Zhujiang.
Diversification Opportunities for Agricultural Bank and Guangzhou Zhujiang
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agricultural and Guangzhou is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Guangzhou Zhujiang Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Zhujiang 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 Guangzhou Zhujiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Zhujiang has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Guangzhou Zhujiang go up and down completely randomly.
Pair Corralation between Agricultural Bank and Guangzhou Zhujiang
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.78 times more return on investment than Guangzhou Zhujiang. However, Agricultural Bank of is 1.28 times less risky than Guangzhou Zhujiang. It trades about 0.11 of its potential returns per unit of risk. Guangzhou Zhujiang Brewery is currently generating about 0.04 per unit of risk. If you would invest 268.00 in Agricultural Bank of on September 14, 2024 and sell it today you would earn a total of 235.00 from holding Agricultural Bank of or generate 87.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Guangzhou Zhujiang Brewery
Performance |
| Timeline |
| Agricultural Bank |
| Guangzhou Zhujiang |
Agricultural Bank and Guangzhou Zhujiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Guangzhou Zhujiang
The main advantage of trading using opposite Agricultural Bank and Guangzhou Zhujiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Guangzhou Zhujiang 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 Guangzhou Zhujiang will offset losses from the drop in Guangzhou Zhujiang's long position.| Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. China Construction Bank | Agricultural Bank vs. Bank of China | Agricultural Bank vs. PetroChina Co Ltd |
| Guangzhou Zhujiang vs. Industrial and Commercial | Guangzhou Zhujiang vs. Kweichow Moutai Co | Guangzhou Zhujiang vs. Agricultural Bank of | Guangzhou Zhujiang vs. China Mobile Limited |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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