Correlation Between Agricultural Bank and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Agricultural Bank of and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Agricultural Bank and Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Fiberhome Telecommunicatio.
Diversification Opportunities for Agricultural Bank and Fiberhome Telecommunicatio
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agricultural and Fiberhome is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiberhome Telecommunicatio has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Agricultural Bank and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Agricultural Bank of is expected to under-perform the Fiberhome Telecommunicatio. But the stock apears to be less risky and, when comparing its historical volatility, Agricultural Bank of is 4.26 times less risky than Fiberhome Telecommunicatio. The stock trades about -0.06 of its potential returns per unit of risk. The Fiberhome Telecommunication Technologies is currently generating about 0.5 of returns per unit of risk over similar time horizon. If you would invest 1,890 in Fiberhome Telecommunication Technologies on November 28, 2024 and sell it today you would earn a total of 720.00 from holding Fiberhome Telecommunication Technologies or generate 38.1% 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. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Agricultural Bank |
| Fiberhome Telecommunicatio |
Agricultural Bank and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Fiberhome Telecommunicatio
The main advantage of trading using opposite Agricultural Bank and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio will offset losses from the drop in Fiberhome Telecommunicatio's long position.| Agricultural Bank vs. Soochow Suzhou Industrial | Agricultural Bank vs. Lootom Telcovideo Network | Agricultural Bank vs. Zhengzhou Coal Mining | Agricultural Bank vs. Tianjin Pengling Rubber |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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