Correlation Between Sino Medical and Agricultural Bank
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By analyzing existing cross correlation between Sino Medical Sciences and Agricultural Bank of, you can compare the effects of market volatilities on Sino Medical 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 Sino Medical with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Medical and Agricultural Bank.
Diversification Opportunities for Sino Medical and Agricultural Bank
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sino and Agricultural is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Sino Medical Sciences and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Sino Medical 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 Sino Medical Sciences 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 Sino Medical i.e., Sino Medical and Agricultural Bank go up and down completely randomly.
Pair Corralation between Sino Medical and Agricultural Bank
Assuming the 90 days trading horizon Sino Medical Sciences is expected to generate 1.24 times more return on investment than Agricultural Bank. However, Sino Medical is 1.24 times more volatile than Agricultural Bank of. It trades about 0.23 of its potential returns per unit of risk. Agricultural Bank of is currently generating about -0.13 per unit of risk. If you would invest 926.00 in Sino Medical Sciences on November 9, 2024 and sell it today you would earn a total of 53.00 from holding Sino Medical Sciences or generate 5.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Medical Sciences vs. Agricultural Bank of
Performance |
| Timeline |
| Sino Medical Sciences |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Agricultural Bank |
Risk-Adjusted Performance
OK
Weak | Strong |
Sino Medical and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Medical and Agricultural Bank
The main advantage of trading using opposite Sino Medical and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Medical 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.The idea behind Sino Medical Sciences and Agricultural Bank of pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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