Correlation Between Agricultural Bank and Shanghai Zhangjiang
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By analyzing existing cross correlation between Agricultural Bank of and Shanghai Zhangjiang Hi Tech, you can compare the effects of market volatilities on Agricultural Bank and Shanghai Zhangjiang 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 Shanghai Zhangjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Shanghai Zhangjiang.
Diversification Opportunities for Agricultural Bank and Shanghai Zhangjiang
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Agricultural and Shanghai is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Shanghai Zhangjiang Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Zhangjiang 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 Shanghai Zhangjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Zhangjiang has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Shanghai Zhangjiang go up and down completely randomly.
Pair Corralation between Agricultural Bank and Shanghai Zhangjiang
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 3.68 times less return on investment than Shanghai Zhangjiang. But when comparing it to its historical volatility, Agricultural Bank of is 2.55 times less risky than Shanghai Zhangjiang. It trades about 0.05 of its potential returns per unit of risk. Shanghai Zhangjiang Hi Tech is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,923 in Shanghai Zhangjiang Hi Tech on August 25, 2024 and sell it today you would earn a total of 946.00 from holding Shanghai Zhangjiang Hi Tech or generate 49.19% 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. Shanghai Zhangjiang Hi Tech
Performance |
| Timeline |
| Agricultural Bank |
| Shanghai Zhangjiang |
Agricultural Bank and Shanghai Zhangjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Shanghai Zhangjiang
The main advantage of trading using opposite Agricultural Bank and Shanghai Zhangjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Shanghai Zhangjiang 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 Shanghai Zhangjiang will offset losses from the drop in Shanghai Zhangjiang'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 |
| Shanghai Zhangjiang vs. Industrial and Commercial | Shanghai Zhangjiang vs. China Construction Bank | Shanghai Zhangjiang vs. Bank of China | Shanghai Zhangjiang vs. Agricultural Bank of |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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