Correlation Between Agricultural Bank and Gansu Jiu
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By analyzing existing cross correlation between Agricultural Bank of and Gansu Jiu Steel, you can compare the effects of market volatilities on Agricultural Bank and Gansu Jiu 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 Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Gansu Jiu.
Diversification Opportunities for Agricultural Bank and Gansu Jiu
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agricultural and Gansu is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Gansu Jiu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Jiu Steel 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 Gansu Jiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Jiu Steel has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Gansu Jiu go up and down completely randomly.
Pair Corralation between Agricultural Bank and Gansu Jiu
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.7 times more return on investment than Gansu Jiu. However, Agricultural Bank of is 1.42 times less risky than Gansu Jiu. It trades about -0.12 of its potential returns per unit of risk. Gansu Jiu Steel is currently generating about -0.28 per unit of risk. If you would invest 519.00 in Agricultural Bank of on October 24, 2024 and sell it today you would lose (18.00) from holding Agricultural Bank of or give up 3.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Gansu Jiu Steel
Performance |
| Timeline |
| Agricultural Bank |
| Gansu Jiu Steel |
Agricultural Bank and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Gansu Jiu
The main advantage of trading using opposite Agricultural Bank and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Gansu Jiu 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 Gansu Jiu will offset losses from the drop in Gansu Jiu's long position.| Agricultural Bank vs. AVIC Fund Management | Agricultural Bank vs. Cicc Fund Management | Agricultural Bank vs. Bank of Communications | Agricultural Bank vs. Shanghai CEO Environmental |
| Gansu Jiu vs. Sichuan Hebang Biotechnology | Gansu Jiu vs. Guilin Seamild Foods | Gansu Jiu vs. HaiXin Foods Co | Gansu Jiu vs. Zhongjing Food Co |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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