Correlation Between Ag Growth and Haitong Securities
Can any of the company-specific risk be diversified away by investing in both Ag Growth and Haitong Securities at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ag Growth and Haitong Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ag Growth International and Haitong Securities Co, you can compare the effects of market volatilities on Ag Growth and Haitong Securities 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 Ag Growth with a short position of Haitong Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ag Growth and Haitong Securities.
Diversification Opportunities for Ag Growth and Haitong Securities
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AGGZF and Haitong is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ag Growth International and Haitong Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haitong Securities and Ag Growth 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 Ag Growth International are associated (or correlated) with Haitong Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haitong Securities has no effect on the direction of Ag Growth i.e., Ag Growth and Haitong Securities go up and down completely randomly.
Pair Corralation between Ag Growth and Haitong Securities
Assuming the 90 days horizon Ag Growth International is expected to generate 0.35 times more return on investment than Haitong Securities. However, Ag Growth International is 2.87 times less risky than Haitong Securities. It trades about 0.22 of its potential returns per unit of risk. Haitong Securities Co is currently generating about -0.22 per unit of risk. If you would invest 3,452 in Ag Growth International on September 4, 2024 and sell it today you would earn a total of 325.00 from holding Ag Growth International or generate 9.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ag Growth International vs. Haitong Securities Co
Performance |
| Timeline |
| Ag Growth International |
| Haitong Securities |
Ag Growth and Haitong Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ag Growth and Haitong Securities
The main advantage of trading using opposite Ag Growth and Haitong Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ag Growth position performs unexpectedly, Haitong Securities 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 Haitong Securities will offset losses from the drop in Haitong Securities' long position.| Ag Growth vs. First Tractor | Ag Growth vs. AmeraMex International | Ag Growth vs. Arts Way Manufacturing Co | Ag Growth vs. American Premium Water |
| Haitong Securities vs. First Tractor | Haitong Securities vs. Ag Growth International | Haitong Securities vs. AmeraMex International | Haitong Securities vs. Arts Way Manufacturing Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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