Correlation Between Agricultural Bank and Hainan Haiqi
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By analyzing existing cross correlation between Agricultural Bank of and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Agricultural Bank and Hainan Haiqi 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 Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Hainan Haiqi.
Diversification Opportunities for Agricultural Bank and Hainan Haiqi
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agricultural and Hainan is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Hainan Haiqi Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Haiqi Transpo 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 Hainan Haiqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Haiqi Transpo has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Agricultural Bank and Hainan Haiqi
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 3.23 times less return on investment than Hainan Haiqi. But when comparing it to its historical volatility, Agricultural Bank of is 2.41 times less risky than Hainan Haiqi. It trades about 0.08 of its potential returns per unit of risk. Hainan Haiqi Transportation is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,675 in Hainan Haiqi Transportation on November 5, 2024 and sell it today you would earn a total of 82.00 from holding Hainan Haiqi Transportation or generate 4.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Agricultural Bank |
| Hainan Haiqi Transpo |
Agricultural Bank and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Hainan Haiqi
The main advantage of trading using opposite Agricultural Bank and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Hainan Haiqi 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 Hainan Haiqi will offset losses from the drop in Hainan Haiqi'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 |
| Hainan Haiqi vs. Hainan Mining Co | Hainan Haiqi vs. Bank of Communications | Hainan Haiqi vs. Hefei Metalforming Mach | Hainan Haiqi vs. Zijin Mining 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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