Correlation Between Agricultural Bank and Fujian Rongji
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By analyzing existing cross correlation between Agricultural Bank of and Fujian Rongji Software, you can compare the effects of market volatilities on Agricultural Bank and Fujian Rongji 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 Fujian Rongji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Fujian Rongji.
Diversification Opportunities for Agricultural Bank and Fujian Rongji
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agricultural and Fujian is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Fujian Rongji Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Rongji Software 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 Fujian Rongji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Rongji Software has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Fujian Rongji go up and down completely randomly.
Pair Corralation between Agricultural Bank and Fujian Rongji
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.38 times more return on investment than Fujian Rongji. However, Agricultural Bank of is 2.62 times less risky than Fujian Rongji. It trades about 0.11 of its potential returns per unit of risk. Fujian Rongji Software is currently generating about 0.02 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. Fujian Rongji Software
Performance |
| Timeline |
| Agricultural Bank |
| Fujian Rongji Software |
Agricultural Bank and Fujian Rongji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Fujian Rongji
The main advantage of trading using opposite Agricultural Bank and Fujian Rongji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Fujian Rongji 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 Fujian Rongji will offset losses from the drop in Fujian Rongji'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 |
| Fujian Rongji vs. Zhuhai Comleader Information | Fujian Rongji vs. Gem Year Industrial Co | Fujian Rongji vs. Hainan Mining Co | Fujian Rongji vs. Hangzhou Gisway Information |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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