Correlation Between Agricultural Bank and Hygon Information
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By analyzing existing cross correlation between Agricultural Bank of and Hygon Information Technology, you can compare the effects of market volatilities on Agricultural Bank and Hygon Information 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 Hygon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Hygon Information.
Diversification Opportunities for Agricultural Bank and Hygon Information
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agricultural and Hygon is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Hygon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hygon Information 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 Hygon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hygon Information has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Hygon Information go up and down completely randomly.
Pair Corralation between Agricultural Bank and Hygon Information
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 2.86 times less return on investment than Hygon Information. But when comparing it to its historical volatility, Agricultural Bank of is 2.69 times less risky than Hygon Information. It trades about 0.1 of its potential returns per unit of risk. Hygon Information Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 5,298 in Hygon Information Technology on September 26, 2024 and sell it today you would earn a total of 8,777 from holding Hygon Information Technology or generate 165.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Hygon Information Technology
Performance |
| Timeline |
| Agricultural Bank |
| Hygon Information |
Agricultural Bank and Hygon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Hygon Information
The main advantage of trading using opposite Agricultural Bank and Hygon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Hygon Information 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 Hygon Information will offset losses from the drop in Hygon Information's long position.| Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. Kweichow Moutai Co | Agricultural Bank vs. China Mobile Limited | Agricultural Bank vs. China Construction Bank |
| Hygon Information vs. Industrial and Commercial | Hygon Information vs. Agricultural Bank of | Hygon Information vs. China Construction Bank | Hygon Information 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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