Correlation Between Agricultural Bank and Hangzhou Weiguang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Agricultural Bank of and Hangzhou Weiguang Electronic, you can compare the effects of market volatilities on Agricultural Bank and Hangzhou Weiguang 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 Hangzhou Weiguang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Hangzhou Weiguang.
Diversification Opportunities for Agricultural Bank and Hangzhou Weiguang
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Agricultural and Hangzhou is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Hangzhou Weiguang Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Weiguang 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 Hangzhou Weiguang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Weiguang has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Hangzhou Weiguang go up and down completely randomly.
Pair Corralation between Agricultural Bank and Hangzhou Weiguang
Assuming the 90 days trading horizon Agricultural Bank of is expected to under-perform the Hangzhou Weiguang. But the stock apears to be less risky and, when comparing its historical volatility, Agricultural Bank of is 2.0 times less risky than Hangzhou Weiguang. The stock trades about -0.04 of its potential returns per unit of risk. The Hangzhou Weiguang Electronic is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,817 in Hangzhou Weiguang Electronic on August 26, 2024 and sell it today you would earn a total of 419.00 from holding Hangzhou Weiguang Electronic or generate 23.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Hangzhou Weiguang Electronic
Performance |
| Timeline |
| Agricultural Bank |
| Hangzhou Weiguang |
Agricultural Bank and Hangzhou Weiguang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Hangzhou Weiguang
The main advantage of trading using opposite Agricultural Bank and Hangzhou Weiguang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Hangzhou Weiguang 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 Hangzhou Weiguang will offset losses from the drop in Hangzhou Weiguang's long position.| Agricultural Bank vs. Bank of China | Agricultural Bank vs. PetroChina Co Ltd | Agricultural Bank vs. Bank of Communications | Agricultural Bank vs. Ping An Insurance |
| Hangzhou Weiguang vs. Industrial and Commercial | Hangzhou Weiguang vs. China Construction Bank | Hangzhou Weiguang vs. Agricultural Bank of | Hangzhou Weiguang vs. Bank of China |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |