Correlation Between Agricultural Bank and Shenzhen Zhongzhuang
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By analyzing existing cross correlation between Agricultural Bank of and Shenzhen Zhongzhuang Construction, you can compare the effects of market volatilities on Agricultural Bank and Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Shenzhen Zhongzhuang.
Diversification Opportunities for Agricultural Bank and Shenzhen Zhongzhuang
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agricultural and Shenzhen is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Shenzhen Zhongzhuang Construct in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Zhongzhuang has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Shenzhen Zhongzhuang go up and down completely randomly.
Pair Corralation between Agricultural Bank and Shenzhen Zhongzhuang
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.35 times more return on investment than Shenzhen Zhongzhuang. However, Agricultural Bank of is 2.85 times less risky than Shenzhen Zhongzhuang. It trades about 0.11 of its potential returns per unit of risk. Shenzhen Zhongzhuang Construction is currently generating about 0.02 per unit of risk. If you would invest 362.00 in Agricultural Bank of on September 12, 2024 and sell it today you would earn a total of 143.00 from holding Agricultural Bank of or generate 39.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Shenzhen Zhongzhuang Construct
Performance |
| Timeline |
| Agricultural Bank |
| Shenzhen Zhongzhuang |
Agricultural Bank and Shenzhen Zhongzhuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Shenzhen Zhongzhuang
The main advantage of trading using opposite Agricultural Bank and Shenzhen Zhongzhuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang will offset losses from the drop in Shenzhen Zhongzhuang's long position.| Agricultural Bank vs. China Petroleum Chemical | Agricultural Bank vs. PetroChina Co Ltd | Agricultural Bank vs. China Mobile Limited | Agricultural Bank vs. Industrial and Commercial |
| Shenzhen Zhongzhuang vs. Agricultural Bank of | Shenzhen Zhongzhuang vs. Industrial and Commercial | Shenzhen Zhongzhuang vs. Bank of China | Shenzhen Zhongzhuang vs. PetroChina Co Ltd |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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