Correlation Between Agricultural Bank and Dawning Information
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By analyzing existing cross correlation between Agricultural Bank of and Dawning Information Industry, you can compare the effects of market volatilities on Agricultural Bank and Dawning Information 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 Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Dawning Information.
Diversification Opportunities for Agricultural Bank and Dawning Information
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Agricultural and Dawning is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information 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 Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Dawning Information go up and down completely randomly.
Pair Corralation between Agricultural Bank and Dawning Information
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 2.55 times less return on investment than Dawning Information. But when comparing it to its historical volatility, Agricultural Bank of is 2.08 times less risky than Dawning Information. It trades about 0.08 of its potential returns per unit of risk. Dawning Information Industry is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 6,451 in Dawning Information Industry on November 5, 2024 and sell it today you would earn a total of 248.00 from holding Dawning Information Industry or generate 3.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Dawning Information Industry
Performance |
| Timeline |
| Agricultural Bank |
| Dawning Information |
Agricultural Bank and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Dawning Information
The main advantage of trading using opposite Agricultural Bank and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.| Agricultural Bank vs. Olympic Circuit Technology | Agricultural Bank vs. Holitech Technology Co | Agricultural Bank vs. Xiamen Bank Co | Agricultural Bank vs. Peoples Insurance of |
| Dawning Information vs. Shanghai CEO Environmental | Dawning Information vs. Universal Scientific Industrial | Dawning Information vs. JCHX Mining Management | Dawning Information vs. Bosera CMSK Industrial |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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