Correlation Between Agricultural Bank and Guangzhou Jinyi
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By analyzing existing cross correlation between Agricultural Bank of and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Agricultural Bank and Guangzhou Jinyi 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 Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Guangzhou Jinyi.
Diversification Opportunities for Agricultural Bank and Guangzhou Jinyi
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agricultural and Guangzhou is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media 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 Guangzhou Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Agricultural Bank and Guangzhou Jinyi
Assuming the 90 days trading horizon Agricultural Bank of is expected to under-perform the Guangzhou Jinyi. But the stock apears to be less risky and, when comparing its historical volatility, Agricultural Bank of is 3.77 times less risky than Guangzhou Jinyi. The stock trades about -0.07 of its potential returns per unit of risk. The Guangzhou Jinyi Media is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 674.00 in Guangzhou Jinyi Media on November 11, 2024 and sell it today you would earn a total of 103.00 from holding Guangzhou Jinyi Media or generate 15.28% 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. Guangzhou Jinyi Media
Performance |
| Timeline |
| Agricultural Bank |
| Guangzhou Jinyi Media |
Agricultural Bank and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Guangzhou Jinyi
The main advantage of trading using opposite Agricultural Bank and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Guangzhou Jinyi 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 Guangzhou Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.| Agricultural Bank vs. Wuhan Yangtze Communication | Agricultural Bank vs. Dongfeng Automobile Co | Agricultural Bank vs. Jiujiang Shanshui Technology | Agricultural Bank vs. Beijing Bewinner Communications |
| Guangzhou Jinyi vs. Agricultural Bank of | Guangzhou Jinyi vs. Industrial Bank Co | Guangzhou Jinyi vs. CITIC Metal Co | Guangzhou Jinyi vs. GRG Banking Equipment |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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