Correlation Between Agricultural Bank and Bank of Nanjing
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By analyzing existing cross correlation between Agricultural Bank of and Bank of Nanjing, you can compare the effects of market volatilities on Agricultural Bank and Bank of Nanjing 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 Bank of Nanjing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Bank of Nanjing.
Diversification Opportunities for Agricultural Bank and Bank of Nanjing
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agricultural and Bank is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Bank of Nanjing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Nanjing 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 Bank of Nanjing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Nanjing has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Bank of Nanjing go up and down completely randomly.
Pair Corralation between Agricultural Bank and Bank of Nanjing
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 1.13 times more return on investment than Bank of Nanjing. However, Agricultural Bank is 1.13 times more volatile than Bank of Nanjing. It trades about 0.33 of its potential returns per unit of risk. Bank of Nanjing is currently generating about 0.04 per unit of risk. If you would invest 473.00 in Agricultural Bank of on September 24, 2024 and sell it today you would earn a total of 31.00 from holding Agricultural Bank of or generate 6.55% 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. Bank of Nanjing
Performance |
Timeline |
Agricultural Bank |
Bank of Nanjing |
Agricultural Bank and Bank of Nanjing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Agricultural Bank and Bank of Nanjing
The main advantage of trading using opposite Agricultural Bank and Bank of Nanjing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Bank of Nanjing 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 Bank of Nanjing will offset losses from the drop in Bank of Nanjing's long position.Agricultural Bank vs. Guocheng Mining Co | Agricultural Bank vs. Sino Platinum Metals Co | Agricultural Bank vs. Guangdong Jinma Entertainment | Agricultural Bank vs. Shenyang Huitian Thermal |
Bank of Nanjing vs. BYD Co Ltd | Bank of Nanjing vs. China Mobile Limited | Bank of Nanjing vs. Agricultural Bank of | Bank of Nanjing vs. Industrial and Commercial |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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