Correlation Between Agricultural Bank and Dalian Thermal
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By analyzing existing cross correlation between Agricultural Bank of and Dalian Thermal Power, you can compare the effects of market volatilities on Agricultural Bank and Dalian Thermal 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 Dalian Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Dalian Thermal.
Diversification Opportunities for Agricultural Bank and Dalian Thermal
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agricultural and Dalian is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Dalian Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalian Thermal Power 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 Dalian Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalian Thermal Power has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Dalian Thermal go up and down completely randomly.
Pair Corralation between Agricultural Bank and Dalian Thermal
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.31 times more return on investment than Dalian Thermal. However, Agricultural Bank of is 3.22 times less risky than Dalian Thermal. It trades about 0.45 of its potential returns per unit of risk. Dalian Thermal Power is currently generating about -0.11 per unit of risk. If you would invest 473.00 in Agricultural Bank of on September 26, 2024 and sell it today you would earn a total of 52.00 from holding Agricultural Bank of or generate 10.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Agricultural Bank of vs. Dalian Thermal Power
Performance |
Timeline |
Agricultural Bank |
Dalian Thermal Power |
Agricultural Bank and Dalian Thermal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Agricultural Bank and Dalian Thermal
The main advantage of trading using opposite Agricultural Bank and Dalian Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Dalian Thermal 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 Dalian Thermal will offset losses from the drop in Dalian Thermal'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 |
Dalian Thermal vs. Industrial and Commercial | Dalian Thermal vs. Agricultural Bank of | Dalian Thermal vs. China Construction Bank | Dalian Thermal vs. Bank of China |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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