Correlation Between Agricultural Bank and Joincare Pharmaceutical
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By analyzing existing cross correlation between Agricultural Bank of and Joincare Pharmaceutical Group, you can compare the effects of market volatilities on Agricultural Bank and Joincare Pharmaceutical 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 Joincare Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Joincare Pharmaceutical.
Diversification Opportunities for Agricultural Bank and Joincare Pharmaceutical
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agricultural and Joincare is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Joincare Pharmaceutical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joincare Pharmaceutical 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 Joincare Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joincare Pharmaceutical has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Joincare Pharmaceutical go up and down completely randomly.
Pair Corralation between Agricultural Bank and Joincare Pharmaceutical
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.73 times more return on investment than Joincare Pharmaceutical. However, Agricultural Bank of is 1.36 times less risky than Joincare Pharmaceutical. It trades about 0.11 of its potential returns per unit of risk. Joincare Pharmaceutical Group is currently generating about 0.01 per unit of risk. If you would invest 269.00 in Agricultural Bank of on September 13, 2024 and sell it today you would earn a total of 228.00 from holding Agricultural Bank of or generate 84.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Agricultural Bank of vs. Joincare Pharmaceutical Group
Performance |
| Timeline |
| Agricultural Bank |
| Joincare Pharmaceutical |
Agricultural Bank and Joincare Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Joincare Pharmaceutical
The main advantage of trading using opposite Agricultural Bank and Joincare Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Joincare Pharmaceutical 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 Joincare Pharmaceutical will offset losses from the drop in Joincare Pharmaceutical's long position.| Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. China Construction Bank | Agricultural Bank vs. Bank of China | Agricultural Bank vs. PetroChina Co Ltd |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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