Correlation Between Shanghai 2345 and Agricultural Bank

Can any of the company-specific risk be diversified away by investing in both Shanghai 2345 and Agricultural Bank 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 Shanghai 2345 and Agricultural Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Shanghai 2345 Network and Agricultural Bank of, you can compare the effects of market volatilities on Shanghai 2345 and Agricultural Bank 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 Shanghai 2345 with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai 2345 and Agricultural Bank.

Diversification Opportunities for Shanghai 2345 and Agricultural Bank

0.0

Correlation Coefficient

Shanghai 2345  Agricultural Bank

Pay attention - limited upside

The 3 months correlation between Shanghai and Agricultural is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai 2345 Network and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Shanghai 2345 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 Shanghai 2345 Network are associated (or correlated) with Agricultural Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agricultural Bank has no effect on the direction of Shanghai 2345 i.e., Shanghai 2345 and Agricultural Bank go up and down completely randomly.

Pair Corralation between Shanghai 2345 and Agricultural Bank

If you would invest  503.00  in Agricultural Bank of on October 13, 2024 and sell it today you would earn a total of  7.00  from holding Agricultural Bank of or generate 1.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Shanghai 2345 Network  vs.  Agricultural Bank of

Shanghai 2345 Network

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Shanghai 2345 Network has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Shanghai 2345 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Agricultural Bank

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Agricultural Bank of are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Agricultural Bank is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Shanghai 2345 and Agricultural Bank

The main advantage of trading using opposite Shanghai 2345 and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai 2345 position performs unexpectedly, Agricultural Bank 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 Agricultural Bank will offset losses from the drop in Agricultural Bank's long position.

The idea behind Shanghai 2345 Network and Agricultural Bank of pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.