Correlation Between Agricultural Bank and Sinocelltech
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By analyzing existing cross correlation between Agricultural Bank of and Sinocelltech Group, you can compare the effects of market volatilities on Agricultural Bank and Sinocelltech 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 Sinocelltech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Sinocelltech.
Diversification Opportunities for Agricultural Bank and Sinocelltech
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agricultural and Sinocelltech is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Sinocelltech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocelltech Group 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 Sinocelltech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocelltech Group has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Sinocelltech go up and down completely randomly.
Pair Corralation between Agricultural Bank and Sinocelltech
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.44 times more return on investment than Sinocelltech. However, Agricultural Bank of is 2.27 times less risky than Sinocelltech. It trades about 0.08 of its potential returns per unit of risk. Sinocelltech Group is currently generating about -0.01 per unit of risk. If you would invest 418.00 in Agricultural Bank of on September 1, 2024 and sell it today you would earn a total of 63.00 from holding Agricultural Bank of or generate 15.07% 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. Sinocelltech Group
Performance |
| Timeline |
| Agricultural Bank |
| Sinocelltech Group |
Agricultural Bank and Sinocelltech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Sinocelltech
The main advantage of trading using opposite Agricultural Bank and Sinocelltech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Sinocelltech 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 Sinocelltech will offset losses from the drop in Sinocelltech's long position.| Agricultural Bank vs. China State Construction | Agricultural Bank vs. China Railway Group | Agricultural Bank vs. China Railway Construction | Agricultural Bank vs. China Mobile Limited |
| Sinocelltech vs. PetroChina Co Ltd | Sinocelltech vs. China Mobile Limited | Sinocelltech vs. CNOOC Limited | Sinocelltech vs. Ping An Insurance |
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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