Correlation Between Agricultural Bank and Metro Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Agricultural Bank of and Metro Investment Development, you can compare the effects of market volatilities on Agricultural Bank and Metro Investment 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 Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Metro Investment.
Diversification Opportunities for Agricultural Bank and Metro Investment
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agricultural and Metro is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Metro Investment Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metro Investment Dev 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 Metro Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metro Investment Dev has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Metro Investment go up and down completely randomly.
Pair Corralation between Agricultural Bank and Metro Investment
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.36 times more return on investment than Metro Investment. However, Agricultural Bank of is 2.77 times less risky than Metro Investment. It trades about 0.09 of its potential returns per unit of risk. Metro Investment Development is currently generating about 0.02 per unit of risk. If you would invest 473.00 in Agricultural Bank of on September 1, 2024 and sell it today you would earn a total of 8.00 from holding Agricultural Bank of or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Metro Investment Development
Performance |
| Timeline |
| Agricultural Bank |
| Metro Investment Dev |
Agricultural Bank and Metro Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Metro Investment
The main advantage of trading using opposite Agricultural Bank and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Metro Investment 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 Metro Investment will offset losses from the drop in Metro Investment's long position.| Agricultural Bank vs. China State Construction | Agricultural Bank vs. China Railway Group | Agricultural Bank vs. China Railway Construction | Agricultural Bank vs. China Mobile Limited |
| Metro Investment vs. BeiGene | Metro Investment vs. Kweichow Moutai Co | Metro Investment vs. Beijing Roborock Technology | Metro Investment vs. G bits Network Technology |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |