Correlation Between Liaoning Chengda and Agricultural Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between Liaoning Chengda Biotechnology and Agricultural Bank of, you can compare the effects of market volatilities on Liaoning Chengda 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 Liaoning Chengda with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liaoning Chengda and Agricultural Bank.
Diversification Opportunities for Liaoning Chengda and Agricultural Bank
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Liaoning and Agricultural is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Liaoning Chengda Biotechnology and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Liaoning Chengda 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 Liaoning Chengda Biotechnology 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 Liaoning Chengda i.e., Liaoning Chengda and Agricultural Bank go up and down completely randomly.
Pair Corralation between Liaoning Chengda and Agricultural Bank
Assuming the 90 days trading horizon Liaoning Chengda Biotechnology is expected to generate 1.66 times more return on investment than Agricultural Bank. However, Liaoning Chengda is 1.66 times more volatile than Agricultural Bank of. It trades about 0.08 of its potential returns per unit of risk. Agricultural Bank of is currently generating about 0.11 per unit of risk. If you would invest 2,723 in Liaoning Chengda Biotechnology on September 4, 2024 and sell it today you would earn a total of 66.00 from holding Liaoning Chengda Biotechnology or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liaoning Chengda Biotechnology vs. Agricultural Bank of
Performance |
| Timeline |
| Liaoning Chengda Bio |
| Agricultural Bank |
Liaoning Chengda and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liaoning Chengda and Agricultural Bank
The main advantage of trading using opposite Liaoning Chengda and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liaoning Chengda 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.| Liaoning Chengda vs. Kweichow Moutai Co | Liaoning Chengda vs. Shenzhen Mindray Bio Medical | Liaoning Chengda vs. Jiangsu Pacific Quartz | Liaoning Chengda vs. G bits Network Technology |
| Agricultural Bank vs. Liaoning Chengda Biotechnology | Agricultural Bank vs. Harvest Fund Management | Agricultural Bank vs. Guangzhou Zhujiang Brewery | Agricultural Bank vs. CICC Fund Management |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets |