Correlation Between Agricultural Bank and Shanghai Yanpu
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By analyzing existing cross correlation between Agricultural Bank of and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Agricultural Bank and Shanghai Yanpu 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 Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Shanghai Yanpu.
Diversification Opportunities for Agricultural Bank and Shanghai Yanpu
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agricultural and Shanghai is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Shanghai Yanpu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yanpu Metal 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 Shanghai Yanpu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yanpu Metal has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Agricultural Bank and Shanghai Yanpu
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 4.65 times less return on investment than Shanghai Yanpu. But when comparing it to its historical volatility, Agricultural Bank of is 3.46 times less risky than Shanghai Yanpu. It trades about 0.09 of its potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,759 in Shanghai Yanpu Metal on September 1, 2024 and sell it today you would earn a total of 279.00 from holding Shanghai Yanpu Metal or generate 7.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| Agricultural Bank |
| Shanghai Yanpu Metal |
Agricultural Bank and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Shanghai Yanpu
The main advantage of trading using opposite Agricultural Bank and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Shanghai Yanpu 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 Shanghai Yanpu will offset losses from the drop in Shanghai Yanpu's long position.| Agricultural Bank vs. China State Construction | Agricultural Bank vs. China Railway Group | Agricultural Bank vs. China Railway Construction | Agricultural Bank vs. China Mobile Limited |
| Shanghai Yanpu vs. BYD Co Ltd | Shanghai Yanpu vs. China Mobile Limited | Shanghai Yanpu vs. Agricultural Bank of | Shanghai Yanpu vs. Industrial and Commercial |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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