Correlation Between Shaanxi Beiyuan and Agricultural Bank
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By analyzing existing cross correlation between Shaanxi Beiyuan Chemical and Agricultural Bank of, you can compare the effects of market volatilities on Shaanxi Beiyuan and Agricultural Bank 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 Shaanxi Beiyuan with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Beiyuan and Agricultural Bank.
Diversification Opportunities for Shaanxi Beiyuan and Agricultural Bank
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shaanxi and Agricultural is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Beiyuan Chemical and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Shaanxi Beiyuan 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 Shaanxi Beiyuan Chemical are associated (or correlated) with Agricultural Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agricultural Bank has no effect on the direction of Shaanxi Beiyuan i.e., Shaanxi Beiyuan and Agricultural Bank go up and down completely randomly.
Pair Corralation between Shaanxi Beiyuan and Agricultural Bank
Assuming the 90 days trading horizon Shaanxi Beiyuan Chemical is expected to under-perform the Agricultural Bank. In addition to that, Shaanxi Beiyuan is 1.05 times more volatile than Agricultural Bank of. It trades about -0.3 of its total potential returns per unit of risk. Agricultural Bank of is currently generating about 0.14 per unit of volatility. If you would invest 501.00 in Agricultural Bank of on October 9, 2024 and sell it today you would earn a total of 18.00 from holding Agricultural Bank of or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Beiyuan Chemical vs. Agricultural Bank of
Performance |
| Timeline |
| Shaanxi Beiyuan Chemical |
| Agricultural Bank |
Shaanxi Beiyuan and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Beiyuan and Agricultural Bank
The main advantage of trading using opposite Shaanxi Beiyuan and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Beiyuan position performs unexpectedly, Agricultural Bank 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 Agricultural Bank will offset losses from the drop in Agricultural Bank's long position.| Shaanxi Beiyuan vs. Zijin Mining Group | Shaanxi Beiyuan vs. Wanhua Chemical Group | Shaanxi Beiyuan vs. Baoshan Iron Steel | Shaanxi Beiyuan vs. Shandong Gold Mining |
| Agricultural Bank vs. Dr Peng Telecom | Agricultural Bank vs. Bangyan Technology Co | Agricultural Bank vs. Holitech Technology Co | Agricultural Bank vs. Sinofibers Technology Co |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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