Correlation Between Agricultural Bank and Jiangsu Seagull
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By analyzing existing cross correlation between Agricultural Bank of and Jiangsu Seagull Cooling, you can compare the effects of market volatilities on Agricultural Bank and Jiangsu Seagull 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 Jiangsu Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Jiangsu Seagull.
Diversification Opportunities for Agricultural Bank and Jiangsu Seagull
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agricultural and Jiangsu is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Jiangsu Seagull Cooling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Seagull Cooling 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 Jiangsu Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Seagull Cooling has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Jiangsu Seagull go up and down completely randomly.
Pair Corralation between Agricultural Bank and Jiangsu Seagull
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.32 times more return on investment than Jiangsu Seagull. However, Agricultural Bank of is 3.12 times less risky than Jiangsu Seagull. It trades about 0.1 of its potential returns per unit of risk. Jiangsu Seagull Cooling is currently generating about 0.0 per unit of risk. If you would invest 343.00 in Agricultural Bank of on September 12, 2024 and sell it today you would earn a total of 162.00 from holding Agricultural Bank of or generate 47.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Jiangsu Seagull Cooling
Performance |
| Timeline |
| Agricultural Bank |
| Jiangsu Seagull Cooling |
Agricultural Bank and Jiangsu Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Jiangsu Seagull
The main advantage of trading using opposite Agricultural Bank and Jiangsu Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Jiangsu Seagull 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 Jiangsu Seagull will offset losses from the drop in Jiangsu Seagull's long position.| Agricultural Bank vs. China Petroleum Chemical | Agricultural Bank vs. PetroChina Co Ltd | Agricultural Bank vs. China Mobile Limited | Agricultural Bank vs. Industrial and Commercial |
| Jiangsu Seagull vs. Agricultural Bank of | Jiangsu Seagull vs. Industrial and Commercial | Jiangsu Seagull vs. Bank of China | Jiangsu Seagull vs. PetroChina Co Ltd |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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