Correlation Between Agricultural Bank and Bank of Jiangsu
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By analyzing existing cross correlation between Agricultural Bank of and Bank of Jiangsu, you can compare the effects of market volatilities on Agricultural Bank and Bank of Jiangsu 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 Bank of Jiangsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Bank of Jiangsu.
Diversification Opportunities for Agricultural Bank and Bank of Jiangsu
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agricultural and Bank is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Bank of Jiangsu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Jiangsu 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 Bank of Jiangsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Jiangsu has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Bank of Jiangsu go up and down completely randomly.
Pair Corralation between Agricultural Bank and Bank of Jiangsu
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.75 times more return on investment than Bank of Jiangsu. However, Agricultural Bank of is 1.33 times less risky than Bank of Jiangsu. It trades about 0.11 of its potential returns per unit of risk. Bank of Jiangsu is currently generating about -0.1 per unit of risk. If you would invest 478.00 in Agricultural Bank of on September 5, 2024 and sell it today you would earn a total of 11.00 from holding Agricultural Bank of or generate 2.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Bank of Jiangsu
Performance |
| Timeline |
| Agricultural Bank |
| Bank of Jiangsu |
Agricultural Bank and Bank of Jiangsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Bank of Jiangsu
The main advantage of trading using opposite Agricultural Bank and Bank of Jiangsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Bank of Jiangsu 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 Bank of Jiangsu will offset losses from the drop in Bank of Jiangsu's long position.| Agricultural Bank vs. Dymatic Chemicals | Agricultural Bank vs. Sportsoul Co Ltd | Agricultural Bank vs. Do Fluoride Chemicals Co | Agricultural Bank vs. Hubeiyichang Transportation Group |
| Bank of Jiangsu vs. Heilongjiang Transport Development | Bank of Jiangsu vs. Shanghai Yaoji Playing | Bank of Jiangsu vs. Dareway Software Co | Bank of Jiangsu vs. Sportsoul Co Ltd |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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