Correlation Between Agricultural Bank and Hangzhou Prevail
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By analyzing existing cross correlation between Agricultural Bank of and Hangzhou Prevail Optoelectronic, you can compare the effects of market volatilities on Agricultural Bank and Hangzhou Prevail 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 Hangzhou Prevail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Hangzhou Prevail.
Diversification Opportunities for Agricultural Bank and Hangzhou Prevail
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Agricultural and Hangzhou is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Hangzhou Prevail Optoelectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Prevail Opt 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 Hangzhou Prevail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Prevail Opt has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Hangzhou Prevail go up and down completely randomly.
Pair Corralation between Agricultural Bank and Hangzhou Prevail
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 3.64 times less return on investment than Hangzhou Prevail. But when comparing it to its historical volatility, Agricultural Bank of is 3.09 times less risky than Hangzhou Prevail. It trades about 0.04 of its potential returns per unit of risk. Hangzhou Prevail Optoelectronic is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,026 in Hangzhou Prevail Optoelectronic on September 3, 2024 and sell it today you would earn a total of 36.00 from holding Hangzhou Prevail Optoelectronic or generate 1.78% 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. Hangzhou Prevail Optoelectroni
Performance |
| Timeline |
| Agricultural Bank |
| Hangzhou Prevail Opt |
Agricultural Bank and Hangzhou Prevail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Hangzhou Prevail
The main advantage of trading using opposite Agricultural Bank and Hangzhou Prevail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Hangzhou Prevail 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 Hangzhou Prevail will offset losses from the drop in Hangzhou Prevail's long position.| Agricultural Bank vs. Kunwu Jiuding Investment | Agricultural Bank vs. Harbin Hatou Investment | Agricultural Bank vs. Dazhong Transportation Group | Agricultural Bank vs. Metro Investment Development |
| Hangzhou Prevail vs. Zhongtong Guomai Communication | Hangzhou Prevail vs. Sunwave Communications Co | Hangzhou Prevail vs. State Grid InformationCommunication | Hangzhou Prevail vs. Eastroc Beverage 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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