Correlation Between Beijing Jiaman and Agricultural Bank
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By analyzing existing cross correlation between Beijing Jiaman Dress and Agricultural Bank of, you can compare the effects of market volatilities on Beijing Jiaman 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 Beijing Jiaman with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Jiaman and Agricultural Bank.
Diversification Opportunities for Beijing Jiaman and Agricultural Bank
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Beijing and Agricultural is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Jiaman Dress and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Beijing Jiaman 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 Beijing Jiaman Dress 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 Beijing Jiaman i.e., Beijing Jiaman and Agricultural Bank go up and down completely randomly.
Pair Corralation between Beijing Jiaman and Agricultural Bank
Assuming the 90 days trading horizon Beijing Jiaman Dress is expected to generate 2.31 times more return on investment than Agricultural Bank. However, Beijing Jiaman is 2.31 times more volatile than Agricultural Bank of. It trades about 0.09 of its potential returns per unit of risk. Agricultural Bank of is currently generating about 0.1 per unit of risk. If you would invest 1,778 in Beijing Jiaman Dress on September 24, 2024 and sell it today you would earn a total of 270.00 from holding Beijing Jiaman Dress or generate 15.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Beijing Jiaman Dress vs. Agricultural Bank of
Performance |
Timeline |
Beijing Jiaman Dress |
Agricultural Bank |
Beijing Jiaman and Agricultural Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing Jiaman and Agricultural Bank
The main advantage of trading using opposite Beijing Jiaman and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Jiaman 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.Beijing Jiaman vs. Agricultural Bank of | Beijing Jiaman vs. Industrial and Commercial | Beijing Jiaman vs. Bank of China | Beijing Jiaman vs. China Construction Bank |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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