Correlation Between Agricultural Bank and Eit Environmental
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By analyzing existing cross correlation between Agricultural Bank of and Eit Environmental Development, you can compare the effects of market volatilities on Agricultural Bank and Eit Environmental 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 Eit Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Eit Environmental.
Diversification Opportunities for Agricultural Bank and Eit Environmental
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agricultural and Eit is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Eit Environmental Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eit Environmental 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 Eit Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eit Environmental has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Eit Environmental go up and down completely randomly.
Pair Corralation between Agricultural Bank and Eit Environmental
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.39 times more return on investment than Eit Environmental. However, Agricultural Bank of is 2.54 times less risky than Eit Environmental. It trades about 0.27 of its potential returns per unit of risk. Eit Environmental Development is currently generating about -0.18 per unit of risk. If you would invest 469.00 in Agricultural Bank of on September 12, 2024 and sell it today you would earn a total of 28.00 from holding Agricultural Bank of or generate 5.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Eit Environmental Development
Performance |
| Timeline |
| Agricultural Bank |
| Eit Environmental |
Agricultural Bank and Eit Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Eit Environmental
The main advantage of trading using opposite Agricultural Bank and Eit Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Eit Environmental 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 Eit Environmental will offset losses from the drop in Eit Environmental's long position.| Agricultural Bank vs. China Petroleum Chemical | Agricultural Bank vs. PetroChina Co Ltd | Agricultural Bank vs. China Mobile Limited | Agricultural Bank vs. Industrial and Commercial |
| Eit Environmental vs. Agricultural Bank of | Eit Environmental vs. Industrial and Commercial | Eit Environmental vs. Bank of China | Eit Environmental vs. PetroChina Co Ltd |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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