Correlation Between Agricultural Bank and Kunwu Jiuding
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By analyzing existing cross correlation between Agricultural Bank of and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Agricultural Bank and Kunwu Jiuding 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 Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Kunwu Jiuding.
Diversification Opportunities for Agricultural Bank and Kunwu Jiuding
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agricultural and Kunwu is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment 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 Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Agricultural Bank and Kunwu Jiuding
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 3.18 times less return on investment than Kunwu Jiuding. But when comparing it to its historical volatility, Agricultural Bank of is 3.11 times less risky than Kunwu Jiuding. It trades about 0.11 of its potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,564 in Kunwu Jiuding Investment on September 4, 2024 and sell it today you would earn a total of 107.00 from holding Kunwu Jiuding Investment or generate 6.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| Agricultural Bank |
| Kunwu Jiuding Investment |
Agricultural Bank and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Kunwu Jiuding
The main advantage of trading using opposite Agricultural Bank and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's long position.| Agricultural Bank vs. Liaoning Chengda Biotechnology | Agricultural Bank vs. Harvest Fund Management | Agricultural Bank vs. Guangzhou Zhujiang Brewery | Agricultural Bank vs. CICC Fund Management |
| Kunwu Jiuding vs. Industrial and Commercial | Kunwu Jiuding vs. Agricultural Bank of | Kunwu Jiuding vs. China Construction Bank | Kunwu Jiuding vs. Bank of China |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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