Correlation Between Xinya Electronic and Agricultural Bank
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By analyzing existing cross correlation between Xinya Electronic Co and Agricultural Bank of, you can compare the effects of market volatilities on Xinya Electronic 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 Xinya Electronic with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinya Electronic and Agricultural Bank.
Diversification Opportunities for Xinya Electronic and Agricultural Bank
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinya and Agricultural is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Xinya Electronic 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 Xinya Electronic 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 Xinya Electronic 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 Xinya Electronic i.e., Xinya Electronic and Agricultural Bank go up and down completely randomly.
Pair Corralation between Xinya Electronic and Agricultural Bank
Assuming the 90 days trading horizon Xinya Electronic Co is expected to under-perform the Agricultural Bank. In addition to that, Xinya Electronic is 3.04 times more volatile than Agricultural Bank of. It trades about -0.04 of its total potential returns per unit of risk. Agricultural Bank of is currently generating about 0.01 per unit of volatility. If you would invest 504.00 in Agricultural Bank of on October 21, 2024 and sell it today you would earn a total of 1.00 from holding Agricultural Bank of or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinya Electronic Co vs. Agricultural Bank of
Performance |
| Timeline |
| Xinya Electronic |
| Agricultural Bank |
Xinya Electronic and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinya Electronic and Agricultural Bank
The main advantage of trading using opposite Xinya Electronic and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinya Electronic 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.| Xinya Electronic vs. Agricultural Bank of | Xinya Electronic vs. Industrial and Commercial | Xinya Electronic vs. Bank of China | Xinya Electronic vs. China Construction Bank |
| Agricultural Bank vs. Jinlong Machinery Electronic | Agricultural Bank vs. JCHX Mining Management | Agricultural Bank vs. Xingguang Agricultural Mach | Agricultural Bank vs. Shantui Construction Machinery |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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