Correlation Between Agricultural Bank and Qinghai Huzhu
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By analyzing existing cross correlation between Agricultural Bank of and Qinghai Huzhu Barley, you can compare the effects of market volatilities on Agricultural Bank and Qinghai Huzhu 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 Qinghai Huzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Qinghai Huzhu.
Diversification Opportunities for Agricultural Bank and Qinghai Huzhu
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agricultural and Qinghai is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Qinghai Huzhu Barley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghai Huzhu Barley 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 Qinghai Huzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghai Huzhu Barley has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Qinghai Huzhu go up and down completely randomly.
Pair Corralation between Agricultural Bank and Qinghai Huzhu
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 2.68 times less return on investment than Qinghai Huzhu. But when comparing it to its historical volatility, Agricultural Bank of is 2.77 times less risky than Qinghai Huzhu. It trades about 0.15 of its potential returns per unit of risk. Qinghai Huzhu Barley is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,006 in Qinghai Huzhu Barley on August 31, 2024 and sell it today you would earn a total of 81.00 from holding Qinghai Huzhu Barley or generate 8.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Agricultural Bank of vs. Qinghai Huzhu Barley
Performance |
| Timeline |
| Agricultural Bank |
| Qinghai Huzhu Barley |
Agricultural Bank and Qinghai Huzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Qinghai Huzhu
The main advantage of trading using opposite Agricultural Bank and Qinghai Huzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Qinghai Huzhu 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 Qinghai Huzhu will offset losses from the drop in Qinghai Huzhu's long position.| Agricultural Bank vs. Zoy Home Furnishing | Agricultural Bank vs. Oppein Home Group | Agricultural Bank vs. Southchip Semiconductor Technology | Agricultural Bank vs. Suofeiya Home Collection |
| Qinghai Huzhu vs. Lutian Machinery Co | Qinghai Huzhu vs. PetroChina Co Ltd | Qinghai Huzhu vs. Bank of China | Qinghai Huzhu vs. Gansu Jiu Steel |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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