Correlation Between Agricultural Bank and King Strong
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By analyzing existing cross correlation between Agricultural Bank of and King Strong New Material, you can compare the effects of market volatilities on Agricultural Bank and King Strong 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 King Strong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and King Strong.
Diversification Opportunities for Agricultural Bank and King Strong
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agricultural and King is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and King Strong New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Strong New 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 King Strong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Strong New has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and King Strong go up and down completely randomly.
Pair Corralation between Agricultural Bank and King Strong
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.55 times more return on investment than King Strong. However, Agricultural Bank of is 1.81 times less risky than King Strong. It trades about -0.15 of its potential returns per unit of risk. King Strong New Material is currently generating about -0.16 per unit of risk. If you would invest 531.00 in Agricultural Bank of on October 26, 2024 and sell it today you would lose (25.00) from holding Agricultural Bank of or give up 4.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. King Strong New Material
Performance |
| Timeline |
| Agricultural Bank |
| King Strong New |
Agricultural Bank and King Strong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and King Strong
The main advantage of trading using opposite Agricultural Bank and King Strong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, King Strong 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 King Strong will offset losses from the drop in King Strong's long position.| Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. China Construction Bank | Agricultural Bank vs. Bank of China | Agricultural Bank vs. Postal Savings Bank |
| King Strong vs. Industrial and Commercial | King Strong vs. China Construction Bank | King Strong vs. Agricultural Bank of | King Strong 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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