Correlation Between Agricultural Bank and Guangdong Electric
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By analyzing existing cross correlation between Agricultural Bank of and Guangdong Electric Power, you can compare the effects of market volatilities on Agricultural Bank and Guangdong Electric 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 Guangdong Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Guangdong Electric.
Diversification Opportunities for Agricultural Bank and Guangdong Electric
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agricultural and Guangdong is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Guangdong Electric Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Electric Power 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 Guangdong Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Electric Power has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Guangdong Electric go up and down completely randomly.
Pair Corralation between Agricultural Bank and Guangdong Electric
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 1.37 times more return on investment than Guangdong Electric. However, Agricultural Bank is 1.37 times more volatile than Guangdong Electric Power. It trades about 0.11 of its potential returns per unit of risk. Guangdong Electric Power is currently generating about -0.01 per unit of risk. If you would invest 274.00 in Agricultural Bank of on October 15, 2024 and sell it today you would earn a total of 236.00 from holding Agricultural Bank of or generate 86.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Guangdong Electric Power
Performance |
| Timeline |
| Agricultural Bank |
| Guangdong Electric Power |
Agricultural Bank and Guangdong Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Guangdong Electric
The main advantage of trading using opposite Agricultural Bank and Guangdong Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Guangdong Electric 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 Guangdong Electric will offset losses from the drop in Guangdong Electric's long position.| Agricultural Bank vs. Shenzhen Noposion Agrochemicals | Agricultural Bank vs. Sinofibers Technology Co | Agricultural Bank vs. Digiwin Software Co | Agricultural Bank vs. Ningxia Younglight Chemicals |
| Guangdong Electric vs. Everdisplay Optronics Shanghai | Guangdong Electric vs. Lontium Semiconductor Corp | Guangdong Electric vs. GRINM Semiconductor Materials | Guangdong Electric vs. Chongqing Brewery Co |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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