Correlation Between Agricultural Bank and Henan Lantian
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By analyzing existing cross correlation between Agricultural Bank of and Henan Lantian Gas, you can compare the effects of market volatilities on Agricultural Bank and Henan Lantian 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 Henan Lantian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Henan Lantian.
Diversification Opportunities for Agricultural Bank and Henan Lantian
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agricultural and Henan is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Henan Lantian Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Lantian Gas 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 Henan Lantian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Lantian Gas has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Henan Lantian go up and down completely randomly.
Pair Corralation between Agricultural Bank and Henan Lantian
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.7 times more return on investment than Henan Lantian. However, Agricultural Bank of is 1.42 times less risky than Henan Lantian. It trades about 0.1 of its potential returns per unit of risk. Henan Lantian Gas is currently generating about 0.05 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Henan Lantian Gas
Performance |
| Timeline |
| Agricultural Bank |
| Henan Lantian Gas |
Agricultural Bank and Henan Lantian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Henan Lantian
The main advantage of trading using opposite Agricultural Bank and Henan Lantian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Henan Lantian 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 Henan Lantian will offset losses from the drop in Henan Lantian'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 |
| Henan Lantian vs. Gansu Jiu Steel | Henan Lantian vs. Shandong Mining Machinery | Henan Lantian vs. Aba Chemicals Corp | Henan Lantian vs. BlueFocus Communication Group |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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