Correlation Between Agricultural Bank and Monalisa Group
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By analyzing existing cross correlation between Agricultural Bank of and Monalisa Group Co, you can compare the effects of market volatilities on Agricultural Bank and Monalisa Group 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 Monalisa Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Monalisa Group.
Diversification Opportunities for Agricultural Bank and Monalisa Group
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agricultural and Monalisa is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Monalisa Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monalisa Group 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 Monalisa Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monalisa Group has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Monalisa Group go up and down completely randomly.
Pair Corralation between Agricultural Bank and Monalisa Group
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 2.78 times less return on investment than Monalisa Group. But when comparing it to its historical volatility, Agricultural Bank of is 8.76 times less risky than Monalisa Group. It trades about 0.11 of its potential returns per unit of risk. Monalisa Group Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,921 in Monalisa Group Co on November 2, 2024 and sell it today you would lose (991.00) from holding Monalisa Group Co or give up 51.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.99% |
| Values | Daily Returns |
Agricultural Bank of vs. Monalisa Group Co
Performance |
| Timeline |
| Agricultural Bank |
| Monalisa Group |
Agricultural Bank and Monalisa Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Monalisa Group
The main advantage of trading using opposite Agricultural Bank and Monalisa Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Monalisa Group 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 Monalisa Group will offset losses from the drop in Monalisa Group's long position.| Agricultural Bank vs. Spring Airlines Co | Agricultural Bank vs. Zhongshan Public Utilities | Agricultural Bank vs. Guangzhou Seagull Kitchen | Agricultural Bank vs. Gifore Agricultural Machinery |
| Monalisa Group vs. Jiahe Foods Industry | Monalisa Group vs. Namchow Food Group | Monalisa Group vs. Zhongyin Babi Food | Monalisa Group vs. Shanghai Ziyan Foods |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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