Correlation Between Agricultural Bank and Xian International
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By analyzing existing cross correlation between Agricultural Bank of and Xian International Medical, you can compare the effects of market volatilities on Agricultural Bank and Xian International 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 Xian International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Xian International.
Diversification Opportunities for Agricultural Bank and Xian International
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agricultural and Xian is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Xian International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian International 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 Xian International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian International has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Xian International go up and down completely randomly.
Pair Corralation between Agricultural Bank and Xian International
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.52 times more return on investment than Xian International. However, Agricultural Bank of is 1.94 times less risky than Xian International. It trades about 0.11 of its potential returns per unit of risk. Xian International Medical is currently generating about -0.05 per unit of risk. If you would invest 273.00 in Agricultural Bank of on September 8, 2024 and sell it today you would earn a total of 222.00 from holding Agricultural Bank of or generate 81.32% 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. Xian International Medical
Performance |
Timeline |
Agricultural Bank |
Xian International |
Agricultural Bank and Xian International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Agricultural Bank and Xian International
The main advantage of trading using opposite Agricultural Bank and Xian International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Xian International 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 Xian International will offset losses from the drop in Xian International's long position.Agricultural Bank vs. Industrial and Commercial | Agricultural Bank vs. Kweichow Moutai Co | Agricultural Bank vs. China Mobile Limited | Agricultural Bank vs. PetroChina Co Ltd |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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