Correlation Between Agricultural Bank and Nanjing Putian
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By analyzing existing cross correlation between Agricultural Bank of and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Agricultural Bank and Nanjing Putian 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 Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Nanjing Putian.
Diversification Opportunities for Agricultural Bank and Nanjing Putian
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agricultural and Nanjing is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec 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 Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Nanjing Putian go up and down completely randomly.
Pair Corralation between Agricultural Bank and Nanjing Putian
Assuming the 90 days trading horizon Agricultural Bank of is expected to under-perform the Nanjing Putian. But the stock apears to be less risky and, when comparing its historical volatility, Agricultural Bank of is 2.39 times less risky than Nanjing Putian. The stock trades about -0.06 of its potential returns per unit of risk. The Nanjing Putian Telecommunications is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 388.00 in Nanjing Putian Telecommunications on November 28, 2024 and sell it today you would lose (4.00) from holding Nanjing Putian Telecommunications or give up 1.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Agricultural Bank |
| Nanjing Putian Telec |
Agricultural Bank and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Nanjing Putian
The main advantage of trading using opposite Agricultural Bank and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Nanjing Putian 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 Nanjing Putian will offset losses from the drop in Nanjing Putian's long position.| Agricultural Bank vs. Soochow Suzhou Industrial | Agricultural Bank vs. Lootom Telcovideo Network | Agricultural Bank vs. Zhengzhou Coal Mining | Agricultural Bank vs. Tianjin Pengling Rubber |
| Nanjing Putian vs. PetroChina Co Ltd | Nanjing Putian vs. Industrial and Commercial | Nanjing Putian vs. China Petroleum Chemical | Nanjing Putian vs. China Construction 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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