Correlation Between Agricultural Bank and Shenzhen Changfang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Agricultural Bank of and Shenzhen Changfang Light, you can compare the effects of market volatilities on Agricultural Bank and Shenzhen Changfang 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 Shenzhen Changfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Shenzhen Changfang.
Diversification Opportunities for Agricultural Bank and Shenzhen Changfang
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agricultural and Shenzhen is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Shenzhen Changfang Light in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Changfang Light 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 Shenzhen Changfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Changfang Light has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Shenzhen Changfang go up and down completely randomly.
Pair Corralation between Agricultural Bank and Shenzhen Changfang
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 1.05 times less return on investment than Shenzhen Changfang. But when comparing it to its historical volatility, Agricultural Bank of is 2.8 times less risky than Shenzhen Changfang. It trades about 0.1 of its potential returns per unit of risk. Shenzhen Changfang Light is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 161.00 in Shenzhen Changfang Light on September 12, 2024 and sell it today you would earn a total of 33.00 from holding Shenzhen Changfang Light or generate 20.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Shenzhen Changfang Light
Performance |
| Timeline |
| Agricultural Bank |
| Shenzhen Changfang Light |
Agricultural Bank and Shenzhen Changfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Shenzhen Changfang
The main advantage of trading using opposite Agricultural Bank and Shenzhen Changfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Shenzhen Changfang 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 Shenzhen Changfang will offset losses from the drop in Shenzhen Changfang's long position.| Agricultural Bank vs. China Petroleum Chemical | Agricultural Bank vs. PetroChina Co Ltd | Agricultural Bank vs. China Mobile Limited | Agricultural Bank vs. Industrial and Commercial |
| Shenzhen Changfang vs. Agricultural Bank of | Shenzhen Changfang vs. Industrial and Commercial | Shenzhen Changfang vs. Bank of China | Shenzhen Changfang vs. PetroChina 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stocks Directory Find actively traded stocks across global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |