Correlation Between Agricultural Bank and Beijing Lanxum
Specify exactly 2 symbols:
By analyzing existing cross correlation between Agricultural Bank of and Beijing Lanxum Tech, you can compare the effects of market volatilities on Agricultural Bank and Beijing Lanxum 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 Beijing Lanxum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Beijing Lanxum.
Diversification Opportunities for Agricultural Bank and Beijing Lanxum
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agricultural and Beijing is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Beijing Lanxum Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Lanxum Tech 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 Beijing Lanxum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Lanxum Tech has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Beijing Lanxum go up and down completely randomly.
Pair Corralation between Agricultural Bank and Beijing Lanxum
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 13.32 times less return on investment than Beijing Lanxum. But when comparing it to its historical volatility, Agricultural Bank of is 4.34 times less risky than Beijing Lanxum. It trades about 0.08 of its potential returns per unit of risk. Beijing Lanxum Tech is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 636.00 in Beijing Lanxum Tech on November 3, 2024 and sell it today you would earn a total of 142.00 from holding Beijing Lanxum Tech or generate 22.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Beijing Lanxum Tech
Performance |
| Timeline |
| Agricultural Bank |
| Beijing Lanxum Tech |
Agricultural Bank and Beijing Lanxum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Beijing Lanxum
The main advantage of trading using opposite Agricultural Bank and Beijing Lanxum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Beijing Lanxum 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 Beijing Lanxum will offset losses from the drop in Beijing Lanxum's long position.The idea behind Agricultural Bank of and Beijing Lanxum Tech pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |