Correlation Between Agricultural Bank and TianJin 712
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By analyzing existing cross correlation between Agricultural Bank of and TianJin 712 Communication, you can compare the effects of market volatilities on Agricultural Bank and TianJin 712 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 TianJin 712. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and TianJin 712.
Diversification Opportunities for Agricultural Bank and TianJin 712
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agricultural and TianJin is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and TianJin 712 Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TianJin 712 Communication 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 TianJin 712. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TianJin 712 Communication has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and TianJin 712 go up and down completely randomly.
Pair Corralation between Agricultural Bank and TianJin 712
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.45 times more return on investment than TianJin 712. However, Agricultural Bank of is 2.24 times less risky than TianJin 712. It trades about 0.11 of its potential returns per unit of risk. TianJin 712 Communication is currently generating about 0.02 per unit of risk. If you would invest 417.00 in Agricultural Bank of on September 14, 2024 and sell it today you would earn a total of 86.00 from holding Agricultural Bank of or generate 20.62% 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. TianJin 712 Communication
Performance |
| Timeline |
| Agricultural Bank |
| TianJin 712 Communication |
Agricultural Bank and TianJin 712 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and TianJin 712
The main advantage of trading using opposite Agricultural Bank and TianJin 712 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, TianJin 712 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 TianJin 712 will offset losses from the drop in TianJin 712's long position.| Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. China Construction Bank | Agricultural Bank vs. Bank of China | Agricultural Bank vs. PetroChina Co Ltd |
| TianJin 712 vs. Guangzhou Haige Communications | TianJin 712 vs. Zhongtong Guomai Communication | TianJin 712 vs. Zhengzhou Coal Mining | TianJin 712 vs. Changchun Faway Automobile |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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