Correlation Between Agricultural Bank and Guangzhou Haozhi
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By analyzing existing cross correlation between Agricultural Bank of and Guangzhou Haozhi Industrial, you can compare the effects of market volatilities on Agricultural Bank and Guangzhou Haozhi 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 Guangzhou Haozhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Guangzhou Haozhi.
Diversification Opportunities for Agricultural Bank and Guangzhou Haozhi
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agricultural and Guangzhou is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Guangzhou Haozhi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haozhi Ind 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 Guangzhou Haozhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haozhi Ind has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Guangzhou Haozhi go up and down completely randomly.
Pair Corralation between Agricultural Bank and Guangzhou Haozhi
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 2.42 times less return on investment than Guangzhou Haozhi. But when comparing it to its historical volatility, Agricultural Bank of is 3.45 times less risky than Guangzhou Haozhi. It trades about 0.11 of its potential returns per unit of risk. Guangzhou Haozhi Industrial is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 814.00 in Guangzhou Haozhi Industrial on September 13, 2024 and sell it today you would earn a total of 1,696 from holding Guangzhou Haozhi Industrial or generate 208.35% 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. Guangzhou Haozhi Industrial
Performance |
| Timeline |
| Agricultural Bank |
| Guangzhou Haozhi Ind |
Agricultural Bank and Guangzhou Haozhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Guangzhou Haozhi
The main advantage of trading using opposite Agricultural Bank and Guangzhou Haozhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Guangzhou Haozhi 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 Guangzhou Haozhi will offset losses from the drop in Guangzhou Haozhi'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 |
| Guangzhou Haozhi vs. Industrial and Commercial | Guangzhou Haozhi vs. Kweichow Moutai Co | Guangzhou Haozhi vs. Agricultural Bank of | Guangzhou Haozhi vs. China Mobile Limited |
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.
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