Correlation Between Shenzhen Agricultural and Bank of China
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Agricultural Products and Bank of China, you can compare the effects of market volatilities on Shenzhen Agricultural and Bank of China 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 Shenzhen Agricultural with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Agricultural and Bank of China.
Diversification Opportunities for Shenzhen Agricultural and Bank of China
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Bank is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Agricultural Products and Bank of China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of China and Shenzhen Agricultural 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 Shenzhen Agricultural Products are associated (or correlated) with Bank of China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of China has no effect on the direction of Shenzhen Agricultural i.e., Shenzhen Agricultural and Bank of China go up and down completely randomly.
Pair Corralation between Shenzhen Agricultural and Bank of China
Assuming the 90 days trading horizon Shenzhen Agricultural Products is expected to generate 1.32 times more return on investment than Bank of China. However, Shenzhen Agricultural is 1.32 times more volatile than Bank of China. It trades about 0.16 of its potential returns per unit of risk. Bank of China is currently generating about 0.09 per unit of risk. If you would invest 488.00 in Shenzhen Agricultural Products on September 25, 2024 and sell it today you would earn a total of 220.00 from holding Shenzhen Agricultural Products or generate 45.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Agricultural Products vs. Bank of China
Performance |
Timeline |
Shenzhen Agricultural |
Bank of China |
Shenzhen Agricultural and Bank of China Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Agricultural and Bank of China
The main advantage of trading using opposite Shenzhen Agricultural and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Agricultural position performs unexpectedly, Bank of China 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 Bank of China will offset losses from the drop in Bank of China's long position.Shenzhen Agricultural vs. Bank of China | Shenzhen Agricultural vs. Kweichow Moutai Co | Shenzhen Agricultural vs. PetroChina Co Ltd | Shenzhen Agricultural vs. Bank of Communications |
Bank of China vs. Elite Color Environmental | Bank of China vs. Oppein Home Group | Bank of China vs. Tianjin Capital Environmental | Bank of China vs. Everdisplay Optronics Shanghai |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Commodity Directory Find actively traded commodities issued by global exchanges |