Correlation Between Agricultural Bank and China Petroleum
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By analyzing existing cross correlation between Agricultural Bank of and China Petroleum Chemical, you can compare the effects of market volatilities on Agricultural Bank and China Petroleum 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 Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and China Petroleum.
Diversification Opportunities for Agricultural Bank and China Petroleum
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agricultural and China is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical 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 Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and China Petroleum go up and down completely randomly.
Pair Corralation between Agricultural Bank and China Petroleum
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.87 times more return on investment than China Petroleum. However, Agricultural Bank of is 1.15 times less risky than China Petroleum. It trades about 0.11 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.05 per unit of risk. If you would invest 448.00 in Agricultural Bank of on November 2, 2024 and sell it today you would earn a total of 68.00 from holding Agricultural Bank of or generate 15.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. China Petroleum Chemical
Performance |
| Timeline |
| Agricultural Bank |
| China Petroleum Chemical |
Agricultural Bank and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and China Petroleum
The main advantage of trading using opposite Agricultural Bank and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, China Petroleum 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 Petroleum will offset losses from the drop in China Petroleum's long position.| Agricultural Bank vs. Anhui Transport Consulting | Agricultural Bank vs. Jiangsu Broadcasting Cable | Agricultural Bank vs. Jiangsu Yanghe Brewery | Agricultural Bank vs. China Sports Industry |
| China Petroleum vs. Beijing Kingsoft Office | China Petroleum vs. Shandong Hi Speed RoadBridge | China Petroleum vs. Zhongshan Broad Ocean Motor | China Petroleum vs. AUPU Home Style |
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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