Correlation Between Agricultural Bank and Shandong Sanyuan
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By analyzing existing cross correlation between Agricultural Bank of and Shandong Sanyuan Biotechnology, you can compare the effects of market volatilities on Agricultural Bank and Shandong Sanyuan 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 Shandong Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Shandong Sanyuan.
Diversification Opportunities for Agricultural Bank and Shandong Sanyuan
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agricultural and Shandong is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Shandong Sanyuan Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sanyuan Bio 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 Shandong Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sanyuan Bio has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Shandong Sanyuan go up and down completely randomly.
Pair Corralation between Agricultural Bank and Shandong Sanyuan
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 2.38 times less return on investment than Shandong Sanyuan. But when comparing it to its historical volatility, Agricultural Bank of is 1.09 times less risky than Shandong Sanyuan. It trades about 0.12 of its potential returns per unit of risk. Shandong Sanyuan Biotechnology is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 2,456 in Shandong Sanyuan Biotechnology on November 4, 2024 and sell it today you would earn a total of 145.00 from holding Shandong Sanyuan Biotechnology or generate 5.9% 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. Shandong Sanyuan Biotechnology
Performance |
| Timeline |
| Agricultural Bank |
| Shandong Sanyuan Bio |
Agricultural Bank and Shandong Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Shandong Sanyuan
The main advantage of trading using opposite Agricultural Bank and Shandong Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Shandong Sanyuan 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 Shandong Sanyuan will offset losses from the drop in Shandong Sanyuan's long position.| Agricultural Bank vs. Olympic Circuit Technology | Agricultural Bank vs. Holitech Technology Co | Agricultural Bank vs. Xiamen Bank Co | Agricultural Bank vs. Peoples Insurance of |
| Shandong Sanyuan vs. Shenyang Blue Silver | Shandong Sanyuan vs. Montage Technology Co | Shandong Sanyuan vs. Guangdong Silvere Sci | Shandong Sanyuan vs. Guangzhou KingTeller Technology |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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