Correlation Between Agricultural Bank and Xinjiang Communications
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By analyzing existing cross correlation between Agricultural Bank of and Xinjiang Communications Construction, you can compare the effects of market volatilities on Agricultural Bank and Xinjiang Communications 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 Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Xinjiang Communications.
Diversification Opportunities for Agricultural Bank and Xinjiang Communications
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agricultural and Xinjiang is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Agricultural Bank and Xinjiang Communications
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.48 times more return on investment than Xinjiang Communications. However, Agricultural Bank of is 2.09 times less risky than Xinjiang Communications. It trades about 0.08 of its potential returns per unit of risk. Xinjiang Communications Construction is currently generating about 0.0 per unit of risk. If you would invest 366.00 in Agricultural Bank of on August 26, 2024 and sell it today you would earn a total of 104.00 from holding Agricultural Bank of or generate 28.42% 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. Xinjiang Communications Constr
Performance |
| Timeline |
| Agricultural Bank |
| Xinjiang Communications |
Agricultural Bank and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Xinjiang Communications
The main advantage of trading using opposite Agricultural Bank and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' 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 |
| Xinjiang Communications vs. Industrial and Commercial | Xinjiang Communications vs. China Construction Bank | Xinjiang Communications vs. Agricultural Bank of | Xinjiang Communications 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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