Correlation Between AGRICUL BK and New York
Can any of the company-specific risk be diversified away by investing in both AGRICUL BK and New York 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 New York 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 The New York, you can compare the effects of market volatilities on AGRICUL BK and New York 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 New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICUL BK and New York.
Diversification Opportunities for AGRICUL BK and New York
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGRICUL and New is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding AGRICUL BK CHINA H and The New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York 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 New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York has no effect on the direction of AGRICUL BK i.e., AGRICUL BK and New York go up and down completely randomly.
Pair Corralation between AGRICUL BK and New York
Assuming the 90 days trading horizon AGRICUL BK is expected to generate 6.34 times less return on investment than New York. But when comparing it to its historical volatility, AGRICUL BK CHINA H is 1.25 times less risky than New York. It trades about 0.01 of its potential returns per unit of risk. The New York is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,120 in The New York on August 29, 2024 and sell it today you would earn a total of 106.00 from holding The New York or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRICUL BK CHINA H vs. The New York
Performance |
| Timeline |
| AGRICUL BK CHINA |
| New York |
AGRICUL BK and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICUL BK and New York
The main advantage of trading using opposite AGRICUL BK and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICUL BK position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.| AGRICUL BK vs. Monster Beverage Corp | AGRICUL BK vs. ALGOMA STEEL GROUP | AGRICUL BK vs. ABO GROUP ENVIRONMENT | AGRICUL BK vs. RELIANCE STEEL AL |
| New York vs. MAGNUM MINING EXP | New York vs. SBM OFFSHORE | New York vs. MCEWEN MINING INC | New York vs. RYU Apparel |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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