Correlation Between Agricultural Bank and Zhejiang Construction
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By analyzing existing cross correlation between Agricultural Bank of and Zhejiang Construction Investment, you can compare the effects of market volatilities on Agricultural Bank and Zhejiang Construction 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 Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Zhejiang Construction.
Diversification Opportunities for Agricultural Bank and Zhejiang Construction
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agricultural and Zhejiang is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction 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 Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Zhejiang Construction go up and down completely randomly.
Pair Corralation between Agricultural Bank and Zhejiang Construction
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.36 times more return on investment than Zhejiang Construction. However, Agricultural Bank of is 2.79 times less risky than Zhejiang Construction. It trades about 0.09 of its potential returns per unit of risk. Zhejiang Construction Investment is currently generating about -0.03 per unit of risk. If you would invest 476.00 in Agricultural Bank of on October 26, 2024 and sell it today you would earn a total of 30.00 from holding Agricultural Bank of or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Agricultural Bank of vs. Zhejiang Construction Investme
Performance |
| Timeline |
| Agricultural Bank |
| Zhejiang Construction |
Agricultural Bank and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Zhejiang Construction
The main advantage of trading using opposite Agricultural Bank and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Zhejiang Construction 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction's long position.| Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. China Construction Bank | Agricultural Bank vs. Bank of China | Agricultural Bank vs. Postal Savings Bank |
| Zhejiang Construction vs. Agricultural Bank of | Zhejiang Construction vs. Industrial and Commercial | Zhejiang Construction vs. Bank of China | Zhejiang Construction vs. China Construction Bank |
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 Stocks Directory module to find actively traded stocks across global markets.
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