Correlation Between Agricultural Bank and Xiangyu Medical
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By analyzing existing cross correlation between Agricultural Bank of and Xiangyu Medical Co, you can compare the effects of market volatilities on Agricultural Bank and Xiangyu Medical 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 Xiangyu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Xiangyu Medical.
Diversification Opportunities for Agricultural Bank and Xiangyu Medical
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agricultural and Xiangyu is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Xiangyu Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyu Medical 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 Xiangyu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyu Medical has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Xiangyu Medical go up and down completely randomly.
Pair Corralation between Agricultural Bank and Xiangyu Medical
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.29 times more return on investment than Xiangyu Medical. However, Agricultural Bank of is 3.42 times less risky than Xiangyu Medical. It trades about 0.33 of its potential returns per unit of risk. Xiangyu Medical Co is currently generating about 0.04 per unit of risk. If you would invest 465.00 in Agricultural Bank of on September 13, 2024 and sell it today you would earn a total of 32.00 from holding Agricultural Bank of or generate 6.88% 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. Xiangyu Medical Co
Performance |
| Timeline |
| Agricultural Bank |
| Xiangyu Medical |
Agricultural Bank and Xiangyu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Xiangyu Medical
The main advantage of trading using opposite Agricultural Bank and Xiangyu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Xiangyu Medical 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 Xiangyu Medical will offset losses from the drop in Xiangyu Medical's long position.| Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. China Construction Bank | Agricultural Bank vs. Bank of China | Agricultural Bank vs. PetroChina Co Ltd |
| Xiangyu Medical vs. Industrial and Commercial | Xiangyu Medical vs. Kweichow Moutai Co | Xiangyu Medical vs. Agricultural Bank of | Xiangyu Medical vs. China Mobile Limited |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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