Correlation Between AGRICUL BK and AEON MALL
Can any of the company-specific risk be diversified away by investing in both AGRICUL BK and AEON MALL 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 AGRICUL BK and AEON MALL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGRICUL BK CHINA H and AEON MALL LTD, you can compare the effects of market volatilities on AGRICUL BK and AEON MALL 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 AGRICUL BK with a short position of AEON MALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICUL BK and AEON MALL.
Diversification Opportunities for AGRICUL BK and AEON MALL
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGRICUL and AEON is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding AGRICUL BK CHINA H and AEON MALL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEON MALL LTD and AGRICUL BK 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 AGRICUL BK CHINA H are associated (or correlated) with AEON MALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEON MALL LTD has no effect on the direction of AGRICUL BK i.e., AGRICUL BK and AEON MALL go up and down completely randomly.
Pair Corralation between AGRICUL BK and AEON MALL
Assuming the 90 days trading horizon AGRICUL BK CHINA H is expected to generate 2.01 times more return on investment than AEON MALL. However, AGRICUL BK is 2.01 times more volatile than AEON MALL LTD. It trades about 0.11 of its potential returns per unit of risk. AEON MALL LTD is currently generating about 0.15 per unit of risk. If you would invest 44.00 in AGRICUL BK CHINA H on September 1, 2024 and sell it today you would earn a total of 2.00 from holding AGRICUL BK CHINA H or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRICUL BK CHINA H vs. AEON MALL LTD
Performance |
| Timeline |
| AGRICUL BK CHINA |
| AEON MALL LTD |
AGRICUL BK and AEON MALL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICUL BK and AEON MALL
The main advantage of trading using opposite AGRICUL BK and AEON MALL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICUL BK position performs unexpectedly, AEON MALL 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 AEON MALL will offset losses from the drop in AEON MALL's long position.| AGRICUL BK vs. BE Semiconductor Industries | AGRICUL BK vs. NXP Semiconductors NV | AGRICUL BK vs. Luckin Coffee | AGRICUL BK vs. ELMOS SEMICONDUCTOR |
| AEON MALL vs. OPEN HOUSE GROUP | AEON MALL vs. Superior Plus Corp | AEON MALL vs. NMI Holdings | AEON MALL vs. Origin Agritech |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |