Correlation Between Agricultural Bank and Shenzhen Kexin
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By analyzing existing cross correlation between Agricultural Bank of and Shenzhen Kexin Communication, you can compare the effects of market volatilities on Agricultural Bank and Shenzhen Kexin 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 Kexin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Shenzhen Kexin.
Diversification Opportunities for Agricultural Bank and Shenzhen Kexin
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agricultural and Shenzhen is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Shenzhen Kexin Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Kexin Commu 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 Kexin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Kexin Commu has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Shenzhen Kexin go up and down completely randomly.
Pair Corralation between Agricultural Bank and Shenzhen Kexin
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.32 times more return on investment than Shenzhen Kexin. However, Agricultural Bank of is 3.09 times less risky than Shenzhen Kexin. It trades about 0.08 of its potential returns per unit of risk. Shenzhen Kexin Communication is currently generating about 0.0 per unit of risk. If you would invest 344.00 in Agricultural Bank of on September 2, 2024 and sell it today you would earn a total of 137.00 from holding Agricultural Bank of or generate 39.83% 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. Shenzhen Kexin Communication
Performance |
| Timeline |
| Agricultural Bank |
| Shenzhen Kexin Commu |
Agricultural Bank and Shenzhen Kexin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Shenzhen Kexin
The main advantage of trading using opposite Agricultural Bank and Shenzhen Kexin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Shenzhen Kexin 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 Kexin will offset losses from the drop in Shenzhen Kexin's long position.| Agricultural Bank vs. Fujian Longzhou Transportation | Agricultural Bank vs. Xinjiang Baodi Mining | Agricultural Bank vs. Shengda Mining Co | Agricultural Bank vs. Western Metal Materials |
| Shenzhen Kexin vs. Industrial and Commercial | Shenzhen Kexin vs. Kweichow Moutai Co | Shenzhen Kexin vs. Agricultural Bank of | Shenzhen Kexin 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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