Correlation Between Agricultural Bank and Wintao Communications
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By analyzing existing cross correlation between Agricultural Bank of and Wintao Communications Co, you can compare the effects of market volatilities on Agricultural Bank and Wintao Communications 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 Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Wintao Communications.
Diversification Opportunities for Agricultural Bank and Wintao Communications
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agricultural and Wintao is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications 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 Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Wintao Communications go up and down completely randomly.
Pair Corralation between Agricultural Bank and Wintao Communications
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.39 times more return on investment than Wintao Communications. However, Agricultural Bank of is 2.56 times less risky than Wintao Communications. It trades about 0.37 of its potential returns per unit of risk. Wintao Communications Co is currently generating about 0.01 per unit of risk. If you would invest 466.00 in Agricultural Bank of on September 14, 2024 and sell it today you would earn a total of 37.00 from holding Agricultural Bank of or generate 7.94% 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. Wintao Communications Co
Performance |
| Timeline |
| Agricultural Bank |
| Wintao Communications |
Agricultural Bank and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Wintao Communications
The main advantage of trading using opposite Agricultural Bank and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' 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 |
| Wintao Communications vs. Industrial and Commercial | Wintao Communications vs. China Construction Bank | Wintao Communications vs. Agricultural Bank of | Wintao Communications vs. Bank of China |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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