Correlation Between Agricultural Bank and Jiangsu Expressway
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By analyzing existing cross correlation between Agricultural Bank of and Jiangsu Expressway Co, you can compare the effects of market volatilities on Agricultural Bank and Jiangsu Expressway 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 Jiangsu Expressway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Jiangsu Expressway.
Diversification Opportunities for Agricultural Bank and Jiangsu Expressway
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agricultural and Jiangsu is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Jiangsu Expressway Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Expressway 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 Jiangsu Expressway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Expressway has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Jiangsu Expressway go up and down completely randomly.
Pair Corralation between Agricultural Bank and Jiangsu Expressway
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 1.26 times less return on investment than Jiangsu Expressway. But when comparing it to its historical volatility, Agricultural Bank of is 1.25 times less risky than Jiangsu Expressway. It trades about 0.08 of its potential returns per unit of risk. Jiangsu Expressway Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 942.00 in Jiangsu Expressway Co on September 1, 2024 and sell it today you would earn a total of 476.00 from holding Jiangsu Expressway Co or generate 50.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Jiangsu Expressway Co
Performance |
| Timeline |
| Agricultural Bank |
| Jiangsu Expressway |
Agricultural Bank and Jiangsu Expressway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Jiangsu Expressway
The main advantage of trading using opposite Agricultural Bank and Jiangsu Expressway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Jiangsu Expressway 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 Jiangsu Expressway will offset losses from the drop in Jiangsu Expressway's long position.| Agricultural Bank vs. China State Construction | Agricultural Bank vs. China Railway Group | Agricultural Bank vs. China Railway Construction | Agricultural Bank vs. China Mobile Limited |
| Jiangsu Expressway vs. De Rucci Healthy | Jiangsu Expressway vs. Lotus Health Group | Jiangsu Expressway vs. Impulse Qingdao Health | Jiangsu Expressway vs. Sinofibers Technology 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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