Correlation Between Agricultural Bank and Shanghai OPM
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By analyzing existing cross correlation between Agricultural Bank of and Shanghai OPM Biosciences, you can compare the effects of market volatilities on Agricultural Bank and Shanghai OPM 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 OPM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Shanghai OPM.
Diversification Opportunities for Agricultural Bank and Shanghai OPM
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Agricultural and Shanghai is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Shanghai OPM Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai OPM Biosciences 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 OPM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai OPM Biosciences has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Shanghai OPM go up and down completely randomly.
Pair Corralation between Agricultural Bank and Shanghai OPM
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 12.41 times less return on investment than Shanghai OPM. But when comparing it to its historical volatility, Agricultural Bank of is 3.91 times less risky than Shanghai OPM. It trades about 0.04 of its potential returns per unit of risk. Shanghai OPM Biosciences is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,860 in Shanghai OPM Biosciences on August 30, 2024 and sell it today you would earn a total of 408.00 from holding Shanghai OPM Biosciences or generate 10.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Shanghai OPM Biosciences
Performance |
| Timeline |
| Agricultural Bank |
| Shanghai OPM Biosciences |
Agricultural Bank and Shanghai OPM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Shanghai OPM
The main advantage of trading using opposite Agricultural Bank and Shanghai OPM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Shanghai OPM 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 OPM will offset losses from the drop in Shanghai OPM's long position.| Agricultural Bank vs. Sinofibers Technology Co | Agricultural Bank vs. Anhui Jianghuai Automobile | Agricultural Bank vs. Uxi Unicomp Technology | Agricultural Bank vs. Jiujiang Shanshui Technology |
| Shanghai OPM vs. Kunwu Jiuding Investment | Shanghai OPM vs. Ningbo Ligong Online | Shanghai OPM vs. Henan Shuanghui Investment | Shanghai OPM vs. Bank of Suzhou |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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