Correlation Between Agricultural Bank and Hubei Dinglong
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By analyzing existing cross correlation between Agricultural Bank of and Hubei Dinglong Chemical, you can compare the effects of market volatilities on Agricultural Bank and Hubei Dinglong 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 Hubei Dinglong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Hubei Dinglong.
Diversification Opportunities for Agricultural Bank and Hubei Dinglong
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agricultural and Hubei is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Hubei Dinglong Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Dinglong Chemical 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 Hubei Dinglong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Dinglong Chemical has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Hubei Dinglong go up and down completely randomly.
Pair Corralation between Agricultural Bank and Hubei Dinglong
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 12.09 times less return on investment than Hubei Dinglong. But when comparing it to its historical volatility, Agricultural Bank of is 2.19 times less risky than Hubei Dinglong. It trades about 0.03 of its potential returns per unit of risk. Hubei Dinglong Chemical is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,931 in Hubei Dinglong Chemical on August 29, 2024 and sell it today you would earn a total of 728.00 from holding Hubei Dinglong Chemical or generate 37.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Hubei Dinglong Chemical
Performance |
| Timeline |
| Agricultural Bank |
| Hubei Dinglong Chemical |
Agricultural Bank and Hubei Dinglong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Hubei Dinglong
The main advantage of trading using opposite Agricultural Bank and Hubei Dinglong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Hubei Dinglong 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 Hubei Dinglong will offset losses from the drop in Hubei Dinglong's long position.| Agricultural Bank vs. Sinofibers Technology Co | Agricultural Bank vs. Anhui Jianghuai Automobile | Agricultural Bank vs. Uxi Unicomp Technology | Agricultural Bank vs. Jiujiang Shanshui Technology |
| Hubei Dinglong vs. Wanhua Chemical Group | Hubei Dinglong vs. Baoshan Iron Steel | Hubei Dinglong vs. Shandong Gold Mining | Hubei Dinglong vs. Rongsheng Petrochemical 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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