Correlation Between Agricultural Bank and Gan Yuan
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By analyzing existing cross correlation between Agricultural Bank of and Gan Yuan Foods, you can compare the effects of market volatilities on Agricultural Bank and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Gan Yuan.
Diversification Opportunities for Agricultural Bank and Gan Yuan
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Agricultural and Gan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Gan Yuan go up and down completely randomly.
Pair Corralation between Agricultural Bank and Gan Yuan
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 8.99 times less return on investment than Gan Yuan. But when comparing it to its historical volatility, Agricultural Bank of is 2.16 times less risky than Gan Yuan. It trades about 0.04 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 7,020 in Gan Yuan Foods on October 25, 2024 and sell it today you would earn a total of 1,745 from holding Gan Yuan Foods or generate 24.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Gan Yuan Foods
Performance |
| Timeline |
| Agricultural Bank |
| Gan Yuan Foods |
Agricultural Bank and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Gan Yuan
The main advantage of trading using opposite Agricultural Bank and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| Agricultural Bank vs. Bank of China | Agricultural Bank vs. Kweichow Moutai Co | Agricultural Bank vs. PetroChina Co Ltd | Agricultural Bank vs. Bank of Communications |
| Gan Yuan vs. Agricultural Bank of | Gan Yuan vs. Postal Savings Bank | Gan Yuan vs. Bank of Communications | Gan Yuan vs. China Merchants Bank |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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