Correlation Between Agricultural Bank and Midea Group
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By analyzing existing cross correlation between Agricultural Bank of and Midea Group Co, you can compare the effects of market volatilities on Agricultural Bank and Midea Group 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 Agricultural Bank with a short position of Midea Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Midea Group.
Diversification Opportunities for Agricultural Bank and Midea Group
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agricultural and Midea is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Midea Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midea Group and Agricultural Bank 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 Agricultural Bank of are associated (or correlated) with Midea Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midea Group has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Midea Group go up and down completely randomly.
Pair Corralation between Agricultural Bank and Midea Group
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.69 times more return on investment than Midea Group. However, Agricultural Bank of is 1.45 times less risky than Midea Group. It trades about 0.09 of its potential returns per unit of risk. Midea Group Co is currently generating about 0.06 per unit of risk. If you would invest 484.00 in Agricultural Bank of on September 25, 2024 and sell it today you would earn a total of 35.00 from holding Agricultural Bank of or generate 7.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Agricultural Bank of vs. Midea Group Co
Performance |
Timeline |
Agricultural Bank |
Midea Group |
Agricultural Bank and Midea Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Agricultural Bank and Midea Group
The main advantage of trading using opposite Agricultural Bank and Midea Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Midea Group 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 Midea Group will offset losses from the drop in Midea Group's long position.Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. Kweichow Moutai Co | Agricultural Bank vs. China Mobile Limited | Agricultural Bank vs. China Construction Bank |
Midea Group vs. Industrial and Commercial | Midea Group vs. Kweichow Moutai Co | Midea Group vs. Agricultural Bank of | Midea Group vs. China Mobile Limited |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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