Correlation Between Agricultural Bank and Dongxing Sec
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By analyzing existing cross correlation between Agricultural Bank of and Dongxing Sec Co, you can compare the effects of market volatilities on Agricultural Bank and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Dongxing Sec.
Diversification Opportunities for Agricultural Bank and Dongxing Sec
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Agricultural and Dongxing is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Dongxing Sec go up and down completely randomly.
Pair Corralation between Agricultural Bank and Dongxing Sec
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 1.15 times less return on investment than Dongxing Sec. But when comparing it to its historical volatility, Agricultural Bank of is 1.67 times less risky than Dongxing Sec. It trades about 0.06 of its potential returns per unit of risk. Dongxing Sec Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 858.00 in Dongxing Sec Co on August 30, 2024 and sell it today you would earn a total of 266.00 from holding Dongxing Sec Co or generate 31.0% 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. Dongxing Sec Co
Performance |
| Timeline |
| Agricultural Bank |
| Dongxing Sec |
Agricultural Bank and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Dongxing Sec
The main advantage of trading using opposite Agricultural Bank and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| Agricultural Bank vs. Sinofibers Technology Co | Agricultural Bank vs. Anhui Jianghuai Automobile | Agricultural Bank vs. Uxi Unicomp Technology | Agricultural Bank vs. Jiujiang Shanshui Technology |
| Dongxing Sec vs. Kweichow Moutai Co | Dongxing Sec vs. Contemporary Amperex Technology | Dongxing Sec vs. G bits Network Technology | Dongxing Sec vs. BYD 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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