Correlation Between Agricultural Bank and Heilongjiang Agriculture
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By analyzing existing cross correlation between Agricultural Bank of and Heilongjiang Agriculture Co, you can compare the effects of market volatilities on Agricultural Bank and Heilongjiang Agriculture 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 Heilongjiang Agriculture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Heilongjiang Agriculture.
Diversification Opportunities for Agricultural Bank and Heilongjiang Agriculture
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agricultural and Heilongjiang is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Heilongjiang Agriculture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Agriculture 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 Heilongjiang Agriculture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Agriculture has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Heilongjiang Agriculture go up and down completely randomly.
Pair Corralation between Agricultural Bank and Heilongjiang Agriculture
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.92 times more return on investment than Heilongjiang Agriculture. However, Agricultural Bank of is 1.09 times less risky than Heilongjiang Agriculture. It trades about 0.13 of its potential returns per unit of risk. Heilongjiang Agriculture Co is currently generating about -0.05 per unit of risk. If you would invest 473.00 in Agricultural Bank of on October 26, 2024 and sell it today you would earn a total of 33.00 from holding Agricultural Bank of or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Heilongjiang Agriculture Co
Performance |
| Timeline |
| Agricultural Bank |
| Heilongjiang Agriculture |
Agricultural Bank and Heilongjiang Agriculture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Heilongjiang Agriculture
The main advantage of trading using opposite Agricultural Bank and Heilongjiang Agriculture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Heilongjiang Agriculture 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 Heilongjiang Agriculture will offset losses from the drop in Heilongjiang Agriculture's long position.| Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. China Construction Bank | Agricultural Bank vs. Bank of China | Agricultural Bank vs. Postal Savings Bank |
| Heilongjiang Agriculture vs. Industrial and Commercial | Heilongjiang Agriculture vs. Kweichow Moutai Co | Heilongjiang Agriculture vs. Agricultural Bank of | Heilongjiang Agriculture vs. China Mobile Limited |
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 CEOs Directory module to screen CEOs from public companies around the world.
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