Correlation Between Senci Electric and Agricultural Bank
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By analyzing existing cross correlation between Senci Electric Machinery and Agricultural Bank of, you can compare the effects of market volatilities on Senci Electric 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 Senci Electric with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senci Electric and Agricultural Bank.
Diversification Opportunities for Senci Electric and Agricultural Bank
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Senci and Agricultural is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Senci Electric Machinery and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Senci Electric 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 Senci Electric Machinery 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 Senci Electric i.e., Senci Electric and Agricultural Bank go up and down completely randomly.
Pair Corralation between Senci Electric and Agricultural Bank
Assuming the 90 days trading horizon Senci Electric Machinery is expected to generate 2.09 times more return on investment than Agricultural Bank. However, Senci Electric is 2.09 times more volatile than Agricultural Bank of. It trades about 0.18 of its potential returns per unit of risk. Agricultural Bank of is currently generating about 0.14 per unit of risk. If you would invest 1,223 in Senci Electric Machinery on September 13, 2024 and sell it today you would earn a total of 411.00 from holding Senci Electric Machinery or generate 33.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senci Electric Machinery vs. Agricultural Bank of
Performance |
| Timeline |
| Senci Electric Machinery |
| Agricultural Bank |
Senci Electric and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senci Electric and Agricultural Bank
The main advantage of trading using opposite Senci Electric and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senci Electric 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.| Senci Electric vs. Zhongrun Resources Investment | Senci Electric vs. Beijing Mainstreets Investment | Senci Electric vs. China Asset Management | Senci Electric vs. Henan Shuanghui Investment |
| Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. China Construction Bank | Agricultural Bank vs. Bank of China | Agricultural Bank vs. PetroChina Co Ltd |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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