Correlation Between Agricultural Bank and Weihai Honglin
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By analyzing existing cross correlation between Agricultural Bank of and Weihai Honglin Electronic, you can compare the effects of market volatilities on Agricultural Bank and Weihai Honglin 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 Weihai Honglin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Weihai Honglin.
Diversification Opportunities for Agricultural Bank and Weihai Honglin
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agricultural and Weihai is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Weihai Honglin Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Honglin Electronic 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 Weihai Honglin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Honglin Electronic has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Weihai Honglin go up and down completely randomly.
Pair Corralation between Agricultural Bank and Weihai Honglin
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.45 times more return on investment than Weihai Honglin. However, Agricultural Bank of is 2.23 times less risky than Weihai Honglin. It trades about 0.11 of its potential returns per unit of risk. Weihai Honglin Electronic is currently generating about -0.03 per unit of risk. If you would invest 268.00 in Agricultural Bank of on September 12, 2024 and sell it today you would earn a total of 237.00 from holding Agricultural Bank of or generate 88.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 88.45% |
| Values | Daily Returns |
Agricultural Bank of vs. Weihai Honglin Electronic
Performance |
| Timeline |
| Agricultural Bank |
| Weihai Honglin Electronic |
Agricultural Bank and Weihai Honglin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Weihai Honglin
The main advantage of trading using opposite Agricultural Bank and Weihai Honglin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Weihai Honglin 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 Weihai Honglin will offset losses from the drop in Weihai Honglin's long position.| Agricultural Bank vs. China Petroleum Chemical | Agricultural Bank vs. PetroChina Co Ltd | Agricultural Bank vs. China Mobile Limited | Agricultural Bank vs. Industrial and Commercial |
| Weihai Honglin vs. Agricultural Bank of | Weihai Honglin vs. Industrial and Commercial | Weihai Honglin vs. Bank of China | Weihai Honglin vs. PetroChina Co Ltd |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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