Correlation Between Agricultural Bank and Zhongjing Food
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By analyzing existing cross correlation between Agricultural Bank of and Zhongjing Food Co, you can compare the effects of market volatilities on Agricultural Bank and Zhongjing Food 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 Zhongjing Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Zhongjing Food.
Diversification Opportunities for Agricultural Bank and Zhongjing Food
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agricultural and Zhongjing is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Zhongjing Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongjing Food 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 Zhongjing Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongjing Food has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Zhongjing Food go up and down completely randomly.
Pair Corralation between Agricultural Bank and Zhongjing Food
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 1.43 times less return on investment than Zhongjing Food. But when comparing it to its historical volatility, Agricultural Bank of is 2.78 times less risky than Zhongjing Food. It trades about 0.04 of its potential returns per unit of risk. Zhongjing Food Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,986 in Zhongjing Food Co on October 25, 2024 and sell it today you would earn a total of 16.00 from holding Zhongjing Food Co or generate 0.54% 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. Zhongjing Food Co
Performance |
| Timeline |
| Agricultural Bank |
| Zhongjing Food |
Agricultural Bank and Zhongjing Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Zhongjing Food
The main advantage of trading using opposite Agricultural Bank and Zhongjing Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Zhongjing Food 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 Zhongjing Food will offset losses from the drop in Zhongjing Food's long position.| Agricultural Bank vs. Bank of China | Agricultural Bank vs. Kweichow Moutai Co | Agricultural Bank vs. PetroChina Co Ltd | Agricultural Bank vs. Bank of Communications |
| Zhongjing Food vs. Agricultural Bank of | Zhongjing Food vs. Postal Savings Bank | Zhongjing Food vs. Bank of Communications | Zhongjing Food vs. China Merchants Bank |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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