Correlation Between Agricultural Bank and YiDong Electronics
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By analyzing existing cross correlation between Agricultural Bank of and YiDong Electronics Technology, you can compare the effects of market volatilities on Agricultural Bank and YiDong Electronics 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 YiDong Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and YiDong Electronics.
Diversification Opportunities for Agricultural Bank and YiDong Electronics
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agricultural and YiDong is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and YiDong Electronics Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YiDong Electronics 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 YiDong Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YiDong Electronics has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and YiDong Electronics go up and down completely randomly.
Pair Corralation between Agricultural Bank and YiDong Electronics
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.36 times more return on investment than YiDong Electronics. However, Agricultural Bank of is 2.79 times less risky than YiDong Electronics. It trades about 0.11 of its potential returns per unit of risk. YiDong Electronics Technology is currently generating about 0.01 per unit of risk. If you would invest 268.00 in Agricultural Bank of on September 14, 2024 and sell it today you would earn a total of 235.00 from holding Agricultural Bank of or generate 87.69% 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. YiDong Electronics Technology
Performance |
| Timeline |
| Agricultural Bank |
| YiDong Electronics |
Agricultural Bank and YiDong Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and YiDong Electronics
The main advantage of trading using opposite Agricultural Bank and YiDong Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, YiDong Electronics 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 YiDong Electronics will offset losses from the drop in YiDong Electronics' long position.| Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. China Construction Bank | Agricultural Bank vs. Bank of China | Agricultural Bank vs. PetroChina Co Ltd |
| YiDong Electronics vs. Focus Media Information | YiDong Electronics vs. State Grid InformationCommunication | YiDong Electronics vs. Datang HuaYin Electric | YiDong Electronics vs. Jilin Jlu Communication |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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