Correlation Between Agricultural Bank and Guangzhou Restaurants
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By analyzing existing cross correlation between Agricultural Bank of and Guangzhou Restaurants Group, you can compare the effects of market volatilities on Agricultural Bank and Guangzhou Restaurants 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 Guangzhou Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Guangzhou Restaurants.
Diversification Opportunities for Agricultural Bank and Guangzhou Restaurants
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Agricultural and Guangzhou is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Guangzhou Restaurants Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Restaurants 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 Guangzhou Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Restaurants has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Guangzhou Restaurants go up and down completely randomly.
Pair Corralation between Agricultural Bank and Guangzhou Restaurants
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.91 times more return on investment than Guangzhou Restaurants. However, Agricultural Bank of is 1.1 times less risky than Guangzhou Restaurants. It trades about -0.01 of its potential returns per unit of risk. Guangzhou Restaurants Group is currently generating about -0.37 per unit of risk. If you would invest 510.00 in Agricultural Bank of on October 18, 2024 and sell it today you would lose (3.00) from holding Agricultural Bank of or give up 0.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Guangzhou Restaurants Group
Performance |
| Timeline |
| Agricultural Bank |
| Guangzhou Restaurants |
Agricultural Bank and Guangzhou Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Guangzhou Restaurants
The main advantage of trading using opposite Agricultural Bank and Guangzhou Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Guangzhou Restaurants 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 Guangzhou Restaurants will offset losses from the drop in Guangzhou Restaurants' long position.| Agricultural Bank vs. Zoje Resources Investment | Agricultural Bank vs. Cultural Investment Holdings | Agricultural Bank vs. Shanghai Material Trading | Agricultural Bank vs. Xiandai Investment Co |
| Guangzhou Restaurants vs. Advanced Technology Materials | Guangzhou Restaurants vs. Jiangnan Mould Plastic | Guangzhou Restaurants vs. JuneYao Dairy Co | Guangzhou Restaurants vs. Guangzhou Tinci Materials |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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