Correlation Between Agricultural Bank and Cofco Biochemical
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By analyzing existing cross correlation between Agricultural Bank of and Cofco Biochemical Anhui, you can compare the effects of market volatilities on Agricultural Bank and Cofco Biochemical 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 Cofco Biochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Cofco Biochemical.
Diversification Opportunities for Agricultural Bank and Cofco Biochemical
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agricultural and Cofco is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Cofco Biochemical Anhui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cofco Biochemical Anhui 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 Cofco Biochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cofco Biochemical Anhui has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Cofco Biochemical go up and down completely randomly.
Pair Corralation between Agricultural Bank and Cofco Biochemical
Assuming the 90 days trading horizon Agricultural Bank is expected to generate 4.0 times less return on investment than Cofco Biochemical. But when comparing it to its historical volatility, Agricultural Bank of is 2.77 times less risky than Cofco Biochemical. It trades about 0.05 of its potential returns per unit of risk. Cofco Biochemical Anhui is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 543.00 in Cofco Biochemical Anhui on December 10, 2024 and sell it today you would earn a total of 16.00 from holding Cofco Biochemical Anhui or generate 2.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Agricultural Bank of vs. Cofco Biochemical Anhui
Performance |
Timeline |
Agricultural Bank |
Cofco Biochemical Anhui |
Agricultural Bank and Cofco Biochemical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Agricultural Bank and Cofco Biochemical
The main advantage of trading using opposite Agricultural Bank and Cofco Biochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Cofco Biochemical 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 Cofco Biochemical will offset losses from the drop in Cofco Biochemical's long position.Agricultural Bank vs. Wonders Information | Agricultural Bank vs. Silkroad Visual Technology | Agricultural Bank vs. Guangzhou Ruoyuchen Information | Agricultural Bank vs. iSoftStone Information Technology |
Cofco Biochemical vs. Northking Information Technology | Cofco Biochemical vs. Western Superconducting Tech | Cofco Biochemical vs. China Asset Management | Cofco Biochemical vs. Linewell Software Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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