Correlation Between Agricultural Bank and Anhui Huaren
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By analyzing existing cross correlation between Agricultural Bank of and Anhui Huaren Health, you can compare the effects of market volatilities on Agricultural Bank and Anhui Huaren 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 Anhui Huaren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Anhui Huaren.
Diversification Opportunities for Agricultural Bank and Anhui Huaren
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Agricultural and Anhui is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Anhui Huaren Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaren Health 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 Anhui Huaren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaren Health has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Anhui Huaren go up and down completely randomly.
Pair Corralation between Agricultural Bank and Anhui Huaren
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.42 times more return on investment than Anhui Huaren. However, Agricultural Bank of is 2.35 times less risky than Anhui Huaren. It trades about 0.11 of its potential returns per unit of risk. Anhui Huaren Health is currently generating about -0.04 per unit of risk. If you would invest 274.00 in Agricultural Bank of on September 28, 2024 and sell it today you would earn a total of 257.00 from holding Agricultural Bank of or generate 93.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 93.1% |
| Values | Daily Returns |
Agricultural Bank of vs. Anhui Huaren Health
Performance |
| Timeline |
| Agricultural Bank |
| Anhui Huaren Health |
Agricultural Bank and Anhui Huaren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Anhui Huaren
The main advantage of trading using opposite Agricultural Bank and Anhui Huaren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Anhui Huaren 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 Anhui Huaren will offset losses from the drop in Anhui Huaren's long position.| Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. Kweichow Moutai Co | Agricultural Bank vs. China Mobile Limited | Agricultural Bank vs. China Construction Bank |
| Anhui Huaren vs. Industrial and Commercial | Anhui Huaren vs. Kweichow Moutai Co | Anhui Huaren vs. Agricultural Bank of | Anhui Huaren vs. China Mobile Limited |
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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