Correlation Between Agricultural Bank and Xinjiang Tianrun
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By analyzing existing cross correlation between Agricultural Bank of and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Agricultural Bank and Xinjiang Tianrun 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 Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Xinjiang Tianrun.
Diversification Opportunities for Agricultural Bank and Xinjiang Tianrun
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agricultural and Xinjiang is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Agricultural Bank and Xinjiang Tianrun
Assuming the 90 days trading horizon Agricultural Bank of is expected to under-perform the Xinjiang Tianrun. But the stock apears to be less risky and, when comparing its historical volatility, Agricultural Bank of is 2.17 times less risky than Xinjiang Tianrun. The stock trades about -0.02 of its potential returns per unit of risk. The Xinjiang Tianrun Dairy is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 840.00 in Xinjiang Tianrun Dairy on September 13, 2024 and sell it today you would earn a total of 216.00 from holding Xinjiang Tianrun Dairy or generate 25.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Agricultural Bank |
| Xinjiang Tianrun Dairy |
Agricultural Bank and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Xinjiang Tianrun
The main advantage of trading using opposite Agricultural Bank and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun'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 |
| Xinjiang Tianrun vs. Agricultural Bank of | Xinjiang Tianrun vs. Industrial and Commercial | Xinjiang Tianrun vs. Bank of China | Xinjiang Tianrun 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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