Correlation Between Agricultural Bank and Western Securities
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By analyzing existing cross correlation between Agricultural Bank of and Western Securities Co, you can compare the effects of market volatilities on Agricultural Bank and Western Securities 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 Western Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Western Securities.
Diversification Opportunities for Agricultural Bank and Western Securities
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agricultural and Western is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Western Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Securities 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 Western Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Securities has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Western Securities go up and down completely randomly.
Pair Corralation between Agricultural Bank and Western Securities
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.42 times more return on investment than Western Securities. However, Agricultural Bank of is 2.39 times less risky than Western Securities. It trades about 0.1 of its potential returns per unit of risk. Western Securities Co is currently generating about -0.1 per unit of risk. If you would invest 476.00 in Agricultural Bank of on October 6, 2024 and sell it today you would earn a total of 39.00 from holding Agricultural Bank of or generate 8.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Agricultural Bank of vs. Western Securities Co
Performance |
Timeline |
Agricultural Bank |
Western Securities |
Agricultural Bank and Western Securities Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Agricultural Bank and Western Securities
The main advantage of trading using opposite Agricultural Bank and Western Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Western Securities 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 Western Securities will offset losses from the drop in Western Securities' long position.Agricultural Bank vs. BeiGene | Agricultural Bank vs. Kweichow Moutai Co | Agricultural Bank vs. Beijing Roborock Technology | Agricultural Bank vs. G bits Network Technology |
Western Securities vs. Jointo Energy Investment | Western Securities vs. Shandong Polymer Biochemicals | Western Securities vs. Hunan Investment Group | Western Securities vs. Zhongrun Resources 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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