Correlation Between Agricultural Bank and Shengyuan Environmental
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By analyzing existing cross correlation between Agricultural Bank of and Shengyuan Environmental Protection, you can compare the effects of market volatilities on Agricultural Bank and Shengyuan 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 Shengyuan Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Shengyuan Environmental.
Diversification Opportunities for Agricultural Bank and Shengyuan Environmental
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agricultural and Shengyuan is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Shengyuan Environmental Protec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengyuan 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 Shengyuan Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengyuan Environmental has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Shengyuan Environmental go up and down completely randomly.
Pair Corralation between Agricultural Bank and Shengyuan Environmental
Assuming the 90 days trading horizon Agricultural Bank of is expected to under-perform the Shengyuan Environmental. But the stock apears to be less risky and, when comparing its historical volatility, Agricultural Bank of is 1.25 times less risky than Shengyuan Environmental. The stock trades about -0.06 of its potential returns per unit of risk. The Shengyuan Environmental Protection is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,273 in Shengyuan Environmental Protection on November 28, 2024 and sell it today you would earn a total of 53.00 from holding Shengyuan Environmental Protection or generate 4.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Shengyuan Environmental Protec
Performance |
| Timeline |
| Agricultural Bank |
| Shengyuan Environmental |
Agricultural Bank and Shengyuan Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Shengyuan Environmental
The main advantage of trading using opposite Agricultural Bank and Shengyuan Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Shengyuan 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 Shengyuan Environmental will offset losses from the drop in Shengyuan Environmental's long position.| Agricultural Bank vs. Soochow Suzhou Industrial | Agricultural Bank vs. Lootom Telcovideo Network | Agricultural Bank vs. Zhengzhou Coal Mining | Agricultural Bank vs. Tianjin Pengling Rubber |
| Shengyuan Environmental vs. Xiangpiaopiao Food Co | Shengyuan Environmental vs. JuneYao Dairy Co | Shengyuan Environmental vs. MayAir Technology Co | Shengyuan Environmental vs. Jinling Hotel Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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