Correlation Between Agricultural Bank and China World
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By analyzing existing cross correlation between Agricultural Bank of and China World Trade, you can compare the effects of market volatilities on Agricultural Bank and China World 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 China World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and China World.
Diversification Opportunities for Agricultural Bank and China World
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Agricultural and China is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and China World Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China World Trade 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 China World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China World Trade has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and China World go up and down completely randomly.
Pair Corralation between Agricultural Bank and China World
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.74 times more return on investment than China World. However, Agricultural Bank of is 1.36 times less risky than China World. It trades about 0.09 of its potential returns per unit of risk. China World Trade is currently generating about 0.03 per unit of risk. If you would invest 364.00 in Agricultural Bank of on August 29, 2024 and sell it today you would earn a total of 117.00 from holding Agricultural Bank of or generate 32.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. China World Trade
Performance |
| Timeline |
| Agricultural Bank |
| China World Trade |
Agricultural Bank and China World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and China World
The main advantage of trading using opposite Agricultural Bank and China World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, China World 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 China World will offset losses from the drop in China World's long position.| Agricultural Bank vs. Sinofibers Technology Co | Agricultural Bank vs. Anhui Jianghuai Automobile | Agricultural Bank vs. Uxi Unicomp Technology | Agricultural Bank vs. Jiujiang Shanshui Technology |
| China World vs. Cambricon Technologies Corp | China World vs. Empyrean Technology Co | China World vs. Kuang Chi Technologies | China World vs. Gansu Jiu Steel |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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