Correlation Between Agricultural Bank and Tianjin Realty
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By analyzing existing cross correlation between Agricultural Bank of and Tianjin Realty Development, you can compare the effects of market volatilities on Agricultural Bank and Tianjin Realty 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 Tianjin Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Tianjin Realty.
Diversification Opportunities for Agricultural Bank and Tianjin Realty
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agricultural and Tianjin is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Tianjin Realty Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Realty Devel 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 Tianjin Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Realty Devel has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Tianjin Realty go up and down completely randomly.
Pair Corralation between Agricultural Bank and Tianjin Realty
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 14.25 times less return on investment than Tianjin Realty. But when comparing it to its historical volatility, Agricultural Bank of is 5.47 times less risky than Tianjin Realty. It trades about 0.05 of its potential returns per unit of risk. Tianjin Realty Development is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 204.00 in Tianjin Realty Development on August 29, 2024 and sell it today you would earn a total of 29.00 from holding Tianjin Realty Development or generate 14.22% 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. Tianjin Realty Development
Performance |
| Timeline |
| Agricultural Bank |
| Tianjin Realty Devel |
Agricultural Bank and Tianjin Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Tianjin Realty
The main advantage of trading using opposite Agricultural Bank and Tianjin Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Tianjin Realty 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 Tianjin Realty will offset losses from the drop in Tianjin Realty's long position.| Agricultural Bank vs. Spring Airlines Co | Agricultural Bank vs. Inspur Software Co | Agricultural Bank vs. Xinjiang Tianrun Dairy | Agricultural Bank vs. Jiajia Food Group |
| Tianjin Realty vs. CICC Fund Management | Tianjin Realty vs. Advanced Technology Materials | Tianjin Realty vs. Kangxin New Materials | Tianjin Realty vs. Ningxia Building Materials |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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