Correlation Between Agricultural Bank and Beijing Kingsoft
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By analyzing existing cross correlation between Agricultural Bank of and Beijing Kingsoft Office, you can compare the effects of market volatilities on Agricultural Bank and Beijing Kingsoft 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 Beijing Kingsoft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Beijing Kingsoft.
Diversification Opportunities for Agricultural Bank and Beijing Kingsoft
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agricultural and Beijing is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Beijing Kingsoft Office in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kingsoft Office 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 Beijing Kingsoft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kingsoft Office has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Beijing Kingsoft go up and down completely randomly.
Pair Corralation between Agricultural Bank and Beijing Kingsoft
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.42 times more return on investment than Beijing Kingsoft. However, Agricultural Bank of is 2.36 times less risky than Beijing Kingsoft. It trades about 0.4 of its potential returns per unit of risk. Beijing Kingsoft Office is currently generating about 0.0 per unit of risk. If you would invest 483.00 in Agricultural Bank of on September 28, 2024 and sell it today you would earn a total of 47.00 from holding Agricultural Bank of or generate 9.73% 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. Beijing Kingsoft Office
Performance |
| Timeline |
| Agricultural Bank |
| Beijing Kingsoft Office |
Agricultural Bank and Beijing Kingsoft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Beijing Kingsoft
The main advantage of trading using opposite Agricultural Bank and Beijing Kingsoft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Beijing Kingsoft 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 Beijing Kingsoft will offset losses from the drop in Beijing Kingsoft'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 |
| Beijing Kingsoft vs. Industrial and Commercial | Beijing Kingsoft vs. Agricultural Bank of | Beijing Kingsoft vs. China Construction Bank | Beijing Kingsoft 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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