Correlation Between Agricultural Bank and GuoChuang Software
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By analyzing existing cross correlation between Agricultural Bank of and GuoChuang Software Co, you can compare the effects of market volatilities on Agricultural Bank and GuoChuang Software 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 GuoChuang Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and GuoChuang Software.
Diversification Opportunities for Agricultural Bank and GuoChuang Software
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agricultural and GuoChuang is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and GuoChuang Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GuoChuang Software 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 GuoChuang Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GuoChuang Software has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and GuoChuang Software go up and down completely randomly.
Pair Corralation between Agricultural Bank and GuoChuang Software
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 1.45 times less return on investment than GuoChuang Software. But when comparing it to its historical volatility, Agricultural Bank of is 3.3 times less risky than GuoChuang Software. It trades about 0.1 of its potential returns per unit of risk. GuoChuang Software Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,125 in GuoChuang Software Co on September 12, 2024 and sell it today you would earn a total of 787.00 from holding GuoChuang Software Co or generate 37.04% 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. GuoChuang Software Co
Performance |
| Timeline |
| Agricultural Bank |
| GuoChuang Software |
Agricultural Bank and GuoChuang Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and GuoChuang Software
The main advantage of trading using opposite Agricultural Bank and GuoChuang Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, GuoChuang Software 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 GuoChuang Software will offset losses from the drop in GuoChuang Software'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 |
| GuoChuang Software vs. Gansu Jiu Steel | GuoChuang Software vs. Shandong Mining Machinery | GuoChuang Software vs. Aba Chemicals Corp | GuoChuang Software vs. BlueFocus Communication Group |
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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