Correlation Between Agricultural Bank and Guangdong Qunxing
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By analyzing existing cross correlation between Agricultural Bank of and Guangdong Qunxing Toys, you can compare the effects of market volatilities on Agricultural Bank and Guangdong Qunxing 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 Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Guangdong Qunxing.
Diversification Opportunities for Agricultural Bank and Guangdong Qunxing
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agricultural and Guangdong is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys 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 Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between Agricultural Bank and Guangdong Qunxing
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.32 times more return on investment than Guangdong Qunxing. However, Agricultural Bank of is 3.1 times less risky than Guangdong Qunxing. It trades about -0.12 of its potential returns per unit of risk. Guangdong Qunxing Toys is currently generating about -0.05 per unit of risk. If you would invest 519.00 in Agricultural Bank of on October 23, 2024 and sell it today you would lose (18.00) from holding Agricultural Bank of or give up 3.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Guangdong Qunxing Toys
Performance |
| Timeline |
| Agricultural Bank |
| Guangdong Qunxing Toys |
Agricultural Bank and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Guangdong Qunxing
The main advantage of trading using opposite Agricultural Bank and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Guangdong Qunxing 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 Qunxing will offset losses from the drop in Guangdong Qunxing's long position.| Agricultural Bank vs. China Asset Management | Agricultural Bank vs. Oppein Home Group | Agricultural Bank vs. Xiamen Goldenhome Co | Agricultural Bank vs. Hunan Mendale Hometextile |
| Guangdong Qunxing vs. Nanjing Putian Telecommunications | Guangdong Qunxing vs. Shanghai Sanyou Medical | Guangdong Qunxing vs. Quectel Wireless Solutions | Guangdong Qunxing vs. Innovative Medical Management |
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 CEOs Directory module to screen CEOs from public companies around the world.
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