Correlation Between Agricultural Bank and Shanghai Construction
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By analyzing existing cross correlation between Agricultural Bank of and Shanghai Construction Group, you can compare the effects of market volatilities on Agricultural Bank and Shanghai Construction 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 Shanghai Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Shanghai Construction.
Diversification Opportunities for Agricultural Bank and Shanghai Construction
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Agricultural and Shanghai is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Shanghai Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Construction 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 Shanghai Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Construction has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Shanghai Construction go up and down completely randomly.
Pair Corralation between Agricultural Bank and Shanghai Construction
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.8 times more return on investment than Shanghai Construction. However, Agricultural Bank of is 1.25 times less risky than Shanghai Construction. It trades about 0.1 of its potential returns per unit of risk. Shanghai Construction Group is currently generating about 0.0 per unit of risk. If you would invest 274.00 in Agricultural Bank of on October 28, 2024 and sell it today you would earn a total of 230.00 from holding Agricultural Bank of or generate 83.94% 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. Shanghai Construction Group
Performance |
| Timeline |
| Agricultural Bank |
| Shanghai Construction |
Agricultural Bank and Shanghai Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Shanghai Construction
The main advantage of trading using opposite Agricultural Bank and Shanghai Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Shanghai Construction 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 Shanghai Construction will offset losses from the drop in Shanghai Construction's long position.| Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. China Construction Bank | Agricultural Bank vs. Bank of China | Agricultural Bank vs. Postal Savings Bank |
| Shanghai Construction vs. Industrial and Commercial | Shanghai Construction vs. China Construction Bank | Shanghai Construction vs. Agricultural Bank of | Shanghai Construction 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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