Correlation Between Agricultural Bank and Suzhou Weizhixiang
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By analyzing existing cross correlation between Agricultural Bank of and Suzhou Weizhixiang Food, you can compare the effects of market volatilities on Agricultural Bank and Suzhou Weizhixiang 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 Suzhou Weizhixiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Suzhou Weizhixiang.
Diversification Opportunities for Agricultural Bank and Suzhou Weizhixiang
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Agricultural and Suzhou is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Suzhou Weizhixiang Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Weizhixiang Food 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 Suzhou Weizhixiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Weizhixiang Food has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Suzhou Weizhixiang go up and down completely randomly.
Pair Corralation between Agricultural Bank and Suzhou Weizhixiang
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 14.47 times less return on investment than Suzhou Weizhixiang. But when comparing it to its historical volatility, Agricultural Bank of is 3.25 times less risky than Suzhou Weizhixiang. It trades about 0.04 of its potential returns per unit of risk. Suzhou Weizhixiang Food is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,080 in Suzhou Weizhixiang Food on August 30, 2024 and sell it today you would earn a total of 275.00 from holding Suzhou Weizhixiang Food or generate 13.22% 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. Suzhou Weizhixiang Food
Performance |
| Timeline |
| Agricultural Bank |
| Suzhou Weizhixiang Food |
Agricultural Bank and Suzhou Weizhixiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Suzhou Weizhixiang
The main advantage of trading using opposite Agricultural Bank and Suzhou Weizhixiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Suzhou Weizhixiang 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 Suzhou Weizhixiang will offset losses from the drop in Suzhou Weizhixiang's long position.| Agricultural Bank vs. Kweichow Moutai Co | Agricultural Bank vs. Shenzhen Mindray Bio Medical | Agricultural Bank vs. Jiangsu Pacific Quartz | Agricultural Bank vs. G bits Network Technology |
| Suzhou Weizhixiang vs. Industrial and Commercial | Suzhou Weizhixiang vs. China Construction Bank | Suzhou Weizhixiang vs. Agricultural Bank of | Suzhou Weizhixiang 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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