Correlation Between Agricultural Bank and Xiamen Goldenhome
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By analyzing existing cross correlation between Agricultural Bank of and Xiamen Goldenhome Co, you can compare the effects of market volatilities on Agricultural Bank and Xiamen Goldenhome 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 Xiamen Goldenhome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Xiamen Goldenhome.
Diversification Opportunities for Agricultural Bank and Xiamen Goldenhome
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agricultural and Xiamen is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Xiamen Goldenhome Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Goldenhome 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 Xiamen Goldenhome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Goldenhome has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Xiamen Goldenhome go up and down completely randomly.
Pair Corralation between Agricultural Bank and Xiamen Goldenhome
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 1.23 times less return on investment than Xiamen Goldenhome. But when comparing it to its historical volatility, Agricultural Bank of is 2.0 times less risky than Xiamen Goldenhome. It trades about 0.06 of its potential returns per unit of risk. Xiamen Goldenhome Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,069 in Xiamen Goldenhome Co on September 5, 2024 and sell it today you would earn a total of 58.00 from holding Xiamen Goldenhome Co or generate 2.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Agricultural Bank of vs. Xiamen Goldenhome Co
Performance |
Timeline |
Agricultural Bank |
Xiamen Goldenhome |
Agricultural Bank and Xiamen Goldenhome Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Agricultural Bank and Xiamen Goldenhome
The main advantage of trading using opposite Agricultural Bank and Xiamen Goldenhome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Xiamen Goldenhome 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 Xiamen Goldenhome will offset losses from the drop in Xiamen Goldenhome's long position.Agricultural Bank vs. Dymatic Chemicals | Agricultural Bank vs. Sportsoul Co Ltd | Agricultural Bank vs. Do Fluoride Chemicals Co | Agricultural Bank vs. Hubeiyichang Transportation Group |
Xiamen Goldenhome vs. Industrial and Commercial | Xiamen Goldenhome vs. Agricultural Bank of | Xiamen Goldenhome vs. China Construction Bank | Xiamen Goldenhome vs. Bank of China |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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