Correlation Between Agricultural Bank and China Satellite
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By analyzing existing cross correlation between Agricultural Bank of and China Satellite Communications, you can compare the effects of market volatilities on Agricultural Bank and China Satellite 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 China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and China Satellite.
Diversification Opportunities for Agricultural Bank and China Satellite
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Agricultural and China is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and China Satellite Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Satellite Comm 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 China Satellite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Satellite Comm has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and China Satellite go up and down completely randomly.
Pair Corralation between Agricultural Bank and China Satellite
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 1.05 times less return on investment than China Satellite. But when comparing it to its historical volatility, Agricultural Bank of is 2.37 times less risky than China Satellite. It trades about 0.09 of its potential returns per unit of risk. China Satellite Communications is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,879 in China Satellite Communications on September 1, 2024 and sell it today you would earn a total of 438.00 from holding China Satellite Communications or generate 23.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. China Satellite Communications
Performance |
| Timeline |
| Agricultural Bank |
| China Satellite Comm |
Agricultural Bank and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and China Satellite
The main advantage of trading using opposite Agricultural Bank and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, China Satellite 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 China Satellite will offset losses from the drop in China Satellite's long position.| Agricultural Bank vs. China State Construction | Agricultural Bank vs. China Railway Group | Agricultural Bank vs. China Railway Construction | Agricultural Bank vs. China Mobile Limited |
| China Satellite vs. Qingdao Choho Industrial | China Satellite vs. Ye Chiu Metal | China Satellite vs. Shenzhen Kexin Communication | China Satellite vs. Haima Automobile Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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