Correlation Between Agricultural Bank and Kunshan Guoli
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By analyzing existing cross correlation between Agricultural Bank of and Kunshan Guoli Electronic, you can compare the effects of market volatilities on Agricultural Bank and Kunshan Guoli 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 Kunshan Guoli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Kunshan Guoli.
Diversification Opportunities for Agricultural Bank and Kunshan Guoli
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agricultural and Kunshan is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Kunshan Guoli Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunshan Guoli Electronic 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 Kunshan Guoli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunshan Guoli Electronic has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Kunshan Guoli go up and down completely randomly.
Pair Corralation between Agricultural Bank and Kunshan Guoli
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 3.59 times less return on investment than Kunshan Guoli. But when comparing it to its historical volatility, Agricultural Bank of is 2.41 times less risky than Kunshan Guoli. It trades about 0.08 of its potential returns per unit of risk. Kunshan Guoli Electronic is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,723 in Kunshan Guoli Electronic on September 3, 2024 and sell it today you would earn a total of 1,537 from holding Kunshan Guoli Electronic or generate 56.45% 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. Kunshan Guoli Electronic
Performance |
| Timeline |
| Agricultural Bank |
| Kunshan Guoli Electronic |
Agricultural Bank and Kunshan Guoli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Kunshan Guoli
The main advantage of trading using opposite Agricultural Bank and Kunshan Guoli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Kunshan Guoli 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 Kunshan Guoli will offset losses from the drop in Kunshan Guoli's long position.| Agricultural Bank vs. Kunwu Jiuding Investment | Agricultural Bank vs. Harbin Hatou Investment | Agricultural Bank vs. Dazhong Transportation Group | Agricultural Bank vs. Metro Investment Development |
| Kunshan Guoli vs. Agricultural Bank of | Kunshan Guoli vs. China Construction Bank | Kunshan Guoli vs. Postal Savings Bank | Kunshan Guoli vs. Bank of Communications |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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