Correlation Between Agricultural Bank and Changjiang Publishing
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By analyzing existing cross correlation between Agricultural Bank of and Changjiang Publishing Media, you can compare the effects of market volatilities on Agricultural Bank and Changjiang Publishing 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 Changjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Changjiang Publishing.
Diversification Opportunities for Agricultural Bank and Changjiang Publishing
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Agricultural and Changjiang is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Changjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Publishing 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 Changjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Publishing has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Changjiang Publishing go up and down completely randomly.
Pair Corralation between Agricultural Bank and Changjiang Publishing
Assuming the 90 days trading horizon Agricultural Bank of is expected to under-perform the Changjiang Publishing. But the stock apears to be less risky and, when comparing its historical volatility, Agricultural Bank of is 1.91 times less risky than Changjiang Publishing. The stock trades about -0.16 of its potential returns per unit of risk. The Changjiang Publishing Media is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 864.00 in Changjiang Publishing Media on August 25, 2024 and sell it today you would lose (1.00) from holding Changjiang Publishing Media or give up 0.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Agricultural Bank of vs. Changjiang Publishing Media
Performance |
| Timeline |
| Agricultural Bank |
| Changjiang Publishing |
Agricultural Bank and Changjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Changjiang Publishing
The main advantage of trading using opposite Agricultural Bank and Changjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Changjiang Publishing 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 Changjiang Publishing will offset losses from the drop in Changjiang Publishing's long position.| Agricultural Bank vs. Road Environment Technology | Agricultural Bank vs. Anhui Deli Household | Agricultural Bank vs. Jiangsu Broadcasting Cable | Agricultural Bank vs. Chahua Modern Housewares |
| Changjiang Publishing vs. China State Construction | Changjiang Publishing vs. Huafa Industrial Co | Changjiang Publishing vs. China International Capital | Changjiang Publishing vs. Kweichow Moutai Co |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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