Correlation Between Agricultural Bank and Changshu Tianyin
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By analyzing existing cross correlation between Agricultural Bank of and Changshu Tianyin Electromechan, you can compare the effects of market volatilities on Agricultural Bank and Changshu Tianyin 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 Changshu Tianyin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Changshu Tianyin.
Diversification Opportunities for Agricultural Bank and Changshu Tianyin
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agricultural and Changshu is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Changshu Tianyin Electromechan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changshu Tianyin Ele 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 Changshu Tianyin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changshu Tianyin Ele has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Changshu Tianyin go up and down completely randomly.
Pair Corralation between Agricultural Bank and Changshu Tianyin
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 1.77 times less return on investment than Changshu Tianyin. But when comparing it to its historical volatility, Agricultural Bank of is 3.51 times less risky than Changshu Tianyin. It trades about 0.11 of its potential returns per unit of risk. Changshu Tianyin Electromechan is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,420 in Changshu Tianyin Electromechan on September 14, 2024 and sell it today you would earn a total of 595.00 from holding Changshu Tianyin Electromechan or generate 41.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Agricultural Bank of vs. Changshu Tianyin Electromechan
Performance |
| Timeline |
| Agricultural Bank |
| Changshu Tianyin Ele |
Agricultural Bank and Changshu Tianyin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Changshu Tianyin
The main advantage of trading using opposite Agricultural Bank and Changshu Tianyin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Changshu Tianyin 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 Changshu Tianyin will offset losses from the drop in Changshu Tianyin's long position.| Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. China Construction Bank | Agricultural Bank vs. Bank of China | Agricultural Bank vs. PetroChina Co Ltd |
| Changshu Tianyin vs. Industrial and Commercial | Changshu Tianyin vs. Agricultural Bank of | Changshu Tianyin vs. China Construction Bank | Changshu Tianyin vs. Bank of China |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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