Correlation Between Agricultural Bank and Henzhen Zhaowei
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By analyzing existing cross correlation between Agricultural Bank of and Henzhen Zhaowei Machinery, you can compare the effects of market volatilities on Agricultural Bank and Henzhen Zhaowei 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 Henzhen Zhaowei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Henzhen Zhaowei.
Diversification Opportunities for Agricultural Bank and Henzhen Zhaowei
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agricultural and Henzhen is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Henzhen Zhaowei Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henzhen Zhaowei Machinery 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 Henzhen Zhaowei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henzhen Zhaowei Machinery has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Henzhen Zhaowei go up and down completely randomly.
Pair Corralation between Agricultural Bank and Henzhen Zhaowei
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 61.95 times less return on investment than Henzhen Zhaowei. But when comparing it to its historical volatility, Agricultural Bank of is 3.45 times less risky than Henzhen Zhaowei. It trades about 0.01 of its potential returns per unit of risk. Henzhen Zhaowei Machinery is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 7,459 in Henzhen Zhaowei Machinery on October 21, 2024 and sell it today you would earn a total of 1,991 from holding Henzhen Zhaowei Machinery or generate 26.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Henzhen Zhaowei Machinery
Performance |
| Timeline |
| Agricultural Bank |
| Henzhen Zhaowei Machinery |
Agricultural Bank and Henzhen Zhaowei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Henzhen Zhaowei
The main advantage of trading using opposite Agricultural Bank and Henzhen Zhaowei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Henzhen Zhaowei 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 Henzhen Zhaowei will offset losses from the drop in Henzhen Zhaowei's long position.| Agricultural Bank vs. Jinlong Machinery Electronic | Agricultural Bank vs. JCHX Mining Management | Agricultural Bank vs. Xingguang Agricultural Mach | Agricultural Bank vs. Shantui Construction Machinery |
| Henzhen Zhaowei vs. Success Electronics | Henzhen Zhaowei vs. Guangzhou Restaurants Group | Henzhen Zhaowei vs. Integrated Electronic Systems | Henzhen Zhaowei vs. Guangdong Ellington Electronics |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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