Correlation Between Agricultural Bank and Tianjin Tianyao
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By analyzing existing cross correlation between Agricultural Bank of and Tianjin Tianyao Pharmaceuticals, you can compare the effects of market volatilities on Agricultural Bank and Tianjin Tianyao 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 Tianyao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Tianjin Tianyao.
Diversification Opportunities for Agricultural Bank and Tianjin Tianyao
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Agricultural and Tianjin is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Tianjin Tianyao Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Tianyao Phar 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 Tianyao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Tianyao Phar has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Tianjin Tianyao go up and down completely randomly.
Pair Corralation between Agricultural Bank and Tianjin Tianyao
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.66 times more return on investment than Tianjin Tianyao. However, Agricultural Bank of is 1.52 times less risky than Tianjin Tianyao. It trades about 0.1 of its potential returns per unit of risk. Tianjin Tianyao Pharmaceuticals is currently generating about 0.0 per unit of risk. If you would invest 271.00 in Agricultural Bank of on August 26, 2024 and sell it today you would earn a total of 199.00 from holding Agricultural Bank of or generate 73.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Tianjin Tianyao Pharmaceutical
Performance |
| Timeline |
| Agricultural Bank |
| Tianjin Tianyao Phar |
Agricultural Bank and Tianjin Tianyao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Tianjin Tianyao
The main advantage of trading using opposite Agricultural Bank and Tianjin Tianyao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Tianjin Tianyao 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 Tianyao will offset losses from the drop in Tianjin Tianyao's long position.| Agricultural Bank vs. Bank of China | Agricultural Bank vs. PetroChina Co Ltd | Agricultural Bank vs. Bank of Communications | Agricultural Bank vs. Ping An Insurance |
| Tianjin Tianyao vs. Olympic Circuit Technology | Tianjin Tianyao vs. Holitech Technology Co | Tianjin Tianyao vs. Changzhou Evergreen Technology | Tianjin Tianyao vs. Citic Guoan Wine |
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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