Correlation Between Agricultural Bank and Sanan Optoelectronics
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By analyzing existing cross correlation between Agricultural Bank of and Sanan Optoelectronics Co, you can compare the effects of market volatilities on Agricultural Bank and Sanan Optoelectronics 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 Sanan Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Sanan Optoelectronics.
Diversification Opportunities for Agricultural Bank and Sanan Optoelectronics
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agricultural and Sanan is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Sanan Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanan Optoelectronics 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 Sanan Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanan Optoelectronics has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Sanan Optoelectronics go up and down completely randomly.
Pair Corralation between Agricultural Bank and Sanan Optoelectronics
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.7 times more return on investment than Sanan Optoelectronics. However, Agricultural Bank of is 1.43 times less risky than Sanan Optoelectronics. It trades about 0.01 of its potential returns per unit of risk. Sanan Optoelectronics Co is currently generating about -0.18 per unit of risk. If you would invest 504.00 in Agricultural Bank of on October 20, 2024 and sell it today you would earn a total of 1.00 from holding Agricultural Bank of or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Sanan Optoelectronics Co
Performance |
| Timeline |
| Agricultural Bank |
| Sanan Optoelectronics |
Agricultural Bank and Sanan Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Sanan Optoelectronics
The main advantage of trading using opposite Agricultural Bank and Sanan Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Sanan Optoelectronics 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 Sanan Optoelectronics will offset losses from the drop in Sanan Optoelectronics' long position.| Agricultural Bank vs. Jinlong Machinery Electronic | Agricultural Bank vs. JCHX Mining Management | Agricultural Bank vs. Xingguang Agricultural Mach | Agricultural Bank vs. Shantui Construction Machinery |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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