Correlation Between Agricultural Bank and China Building
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By analyzing existing cross correlation between Agricultural Bank of and China Building Material, you can compare the effects of market volatilities on Agricultural Bank and China Building 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 Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and China Building.
Diversification Opportunities for Agricultural Bank and China Building
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Agricultural and China is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and China Building Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Building Material 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 Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Building Material has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and China Building go up and down completely randomly.
Pair Corralation between Agricultural Bank and China Building
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 2.49 times less return on investment than China Building. But when comparing it to its historical volatility, Agricultural Bank of is 1.24 times less risky than China Building. It trades about 0.08 of its potential returns per unit of risk. China Building Material is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 688.00 in China Building Material on November 5, 2024 and sell it today you would earn a total of 28.00 from holding China Building Material or generate 4.07% 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 Building Material
Performance |
| Timeline |
| Agricultural Bank |
| China Building Material |
Agricultural Bank and China Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and China Building
The main advantage of trading using opposite Agricultural Bank and China Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, China Building 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 Building will offset losses from the drop in China Building's long position.| Agricultural Bank vs. Jiajia Food Group | Agricultural Bank vs. Ningbo Kangqiang Electronics | Agricultural Bank vs. Yan Tai Shuang | Agricultural Bank vs. Zhejiang Huatong Meat |
| China Building vs. Zijin Mining Group | China Building vs. Western Mining Co | China Building vs. Time Publishing and | China Building vs. Shandong Publishing Media |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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