Correlation Between AGRICUL BK and Global Fashion
Can any of the company-specific risk be diversified away by investing in both AGRICUL BK and Global Fashion 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 Global Fashion 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 Global Fashion Group, you can compare the effects of market volatilities on AGRICUL BK and Global Fashion 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 Global Fashion. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICUL BK and Global Fashion.
Diversification Opportunities for AGRICUL BK and Global Fashion
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AGRICUL and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AGRICUL BK CHINA H and Global Fashion Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Fashion Group 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 Global Fashion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Fashion Group has no effect on the direction of AGRICUL BK i.e., AGRICUL BK and Global Fashion go up and down completely randomly.
Pair Corralation between AGRICUL BK and Global Fashion
If you would invest 24.00 in Global Fashion Group on August 31, 2024 and sell it today you would lose (1.00) from holding Global Fashion Group or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
AGRICUL BK CHINA H vs. Global Fashion Group
Performance |
| Timeline |
| AGRICUL BK CHINA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Global Fashion Group |
AGRICUL BK and Global Fashion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICUL BK and Global Fashion
The main advantage of trading using opposite AGRICUL BK and Global Fashion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICUL BK position performs unexpectedly, Global Fashion 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 Global Fashion will offset losses from the drop in Global Fashion's long position.| AGRICUL BK vs. Check Point Software | AGRICUL BK vs. Verizon Communications | AGRICUL BK vs. CPU SOFTWAREHOUSE | AGRICUL BK vs. Ribbon Communications |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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