Correlation Between Agricultural Bank and Jinlong Machinery
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By analyzing existing cross correlation between Agricultural Bank of and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Agricultural Bank and Jinlong Machinery 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 Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Jinlong Machinery.
Diversification Opportunities for Agricultural Bank and Jinlong Machinery
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agricultural and Jinlong is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong 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 Jinlong Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinlong Machinery has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Agricultural Bank and Jinlong Machinery
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.26 times more return on investment than Jinlong Machinery. However, Agricultural Bank of is 3.84 times less risky than Jinlong Machinery. It trades about 0.04 of its potential returns per unit of risk. Jinlong Machinery Electronic is currently generating about -0.07 per unit of risk. If you would invest 482.00 in Agricultural Bank of on October 25, 2024 and sell it today you would earn a total of 11.00 from holding Agricultural Bank of or generate 2.28% 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. Jinlong Machinery Electronic
Performance |
| Timeline |
| Agricultural Bank |
| Jinlong Machinery |
Agricultural Bank and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Jinlong Machinery
The main advantage of trading using opposite Agricultural Bank and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Jinlong Machinery 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 Jinlong Machinery will offset losses from the drop in Jinlong Machinery'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 |
| Jinlong Machinery vs. Kweichow Moutai Co | Jinlong Machinery vs. Contemporary Amperex Technology | Jinlong Machinery vs. Beijing Roborock Technology | Jinlong Machinery vs. BYD Co Ltd |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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