Correlation Between Agricultural Bank and Fibocom Wireless
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By analyzing existing cross correlation between Agricultural Bank of and Fibocom Wireless, you can compare the effects of market volatilities on Agricultural Bank and Fibocom Wireless 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 Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Fibocom Wireless.
Diversification Opportunities for Agricultural Bank and Fibocom Wireless
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agricultural and Fibocom is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless 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 Fibocom Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fibocom Wireless has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Fibocom Wireless go up and down completely randomly.
Pair Corralation between Agricultural Bank and Fibocom Wireless
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.37 times more return on investment than Fibocom Wireless. However, Agricultural Bank of is 2.7 times less risky than Fibocom Wireless. It trades about 0.1 of its potential returns per unit of risk. Fibocom Wireless is currently generating about 0.02 per unit of risk. If you would invest 271.00 in Agricultural Bank of on September 4, 2024 and sell it today you would earn a total of 211.00 from holding Agricultural Bank of or generate 77.86% 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. Fibocom Wireless
Performance |
| Timeline |
| Agricultural Bank |
| Fibocom Wireless |
Agricultural Bank and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Fibocom Wireless
The main advantage of trading using opposite Agricultural Bank and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Fibocom Wireless 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 Fibocom Wireless will offset losses from the drop in Fibocom Wireless' long position.| Agricultural Bank vs. Liaoning Chengda Biotechnology | Agricultural Bank vs. Harvest Fund Management | Agricultural Bank vs. Guangzhou Zhujiang Brewery | Agricultural Bank vs. CICC Fund Management |
| Fibocom Wireless vs. Industrial and Commercial | Fibocom Wireless vs. China Construction Bank | Fibocom Wireless vs. Bank of China | Fibocom Wireless vs. Agricultural Bank of |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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