Correlation Between Xiamen Goldenhome and Agricultural Bank
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Agricultural Bank of, you can compare the effects of market volatilities on Xiamen Goldenhome 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 Xiamen Goldenhome with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Agricultural Bank.
Diversification Opportunities for Xiamen Goldenhome and Agricultural Bank
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xiamen and Agricultural is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome Co and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Xiamen Goldenhome 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 Xiamen Goldenhome Co 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 Xiamen Goldenhome i.e., Xiamen Goldenhome and Agricultural Bank go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Agricultural Bank
Assuming the 90 days trading horizon Xiamen Goldenhome Co is expected to under-perform the Agricultural Bank. In addition to that, Xiamen Goldenhome is 1.79 times more volatile than Agricultural Bank of. It trades about -0.05 of its total potential returns per unit of risk. Agricultural Bank of is currently generating about 0.08 per unit of volatility. If you would invest 508.00 in Agricultural Bank of on November 3, 2024 and sell it today you would earn a total of 8.00 from holding Agricultural Bank of or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. Agricultural Bank of
Performance |
| Timeline |
| Xiamen Goldenhome |
| Agricultural Bank |
Xiamen Goldenhome and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and Agricultural Bank
The main advantage of trading using opposite Xiamen Goldenhome and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome 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.| Xiamen Goldenhome vs. Henan Shuanghui Investment | Xiamen Goldenhome vs. Hunan Investment Group | Xiamen Goldenhome vs. Caihong Display Devices | Xiamen Goldenhome vs. Chengdu Xingrong Investment |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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