Correlation Between Agricultural Bank and Guangzhou SiE
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By analyzing existing cross correlation between Agricultural Bank of and Guangzhou SiE Consulting, you can compare the effects of market volatilities on Agricultural Bank and Guangzhou SiE 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 SiE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Guangzhou SiE.
Diversification Opportunities for Agricultural Bank and Guangzhou SiE
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Agricultural and Guangzhou is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Guangzhou SiE Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou SiE Consulting 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 SiE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou SiE Consulting has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Guangzhou SiE go up and down completely randomly.
Pair Corralation between Agricultural Bank and Guangzhou SiE
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 6.05 times less return on investment than Guangzhou SiE. But when comparing it to its historical volatility, Agricultural Bank of is 2.77 times less risky than Guangzhou SiE. It trades about 0.04 of its potential returns per unit of risk. Guangzhou SiE Consulting is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,251 in Guangzhou SiE Consulting on October 22, 2024 and sell it today you would earn a total of 481.00 from holding Guangzhou SiE Consulting or generate 38.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Guangzhou SiE Consulting
Performance |
| Timeline |
| Agricultural Bank |
| Guangzhou SiE Consulting |
Agricultural Bank and Guangzhou SiE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Guangzhou SiE
The main advantage of trading using opposite Agricultural Bank and Guangzhou SiE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Guangzhou SiE 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 SiE will offset losses from the drop in Guangzhou SiE's long position.| Agricultural Bank vs. Zijin Mining Group | Agricultural Bank vs. Uroica Mining Safety | Agricultural Bank vs. Eyebright Medical Technology | Agricultural Bank vs. Tianjin Ruixin Technology |
| Guangzhou SiE vs. BYD Co Ltd | Guangzhou SiE vs. China Mobile Limited | Guangzhou SiE vs. Agricultural Bank of | Guangzhou SiE vs. Industrial and Commercial |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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