Correlation Between Agricultural Bank and Caitong Securities

Can any of the company-specific risk be diversified away by investing in both Agricultural Bank and Caitong Securities at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Agricultural Bank and Caitong Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Agricultural Bank of and Caitong Securities Co, you can compare the effects of market volatilities on Agricultural Bank and Caitong 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 Caitong Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Caitong Securities.

Diversification Opportunities for Agricultural Bank and Caitong Securities

0.0

Correlation Coefficient

Agricultural Bank  Caitong Securities

Pay attention - limited upside

The 3 months correlation between Agricultural and Caitong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Caitong Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caitong 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 Caitong Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caitong Securities has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Caitong Securities go up and down completely randomly.

Pair Corralation between Agricultural Bank and Caitong Securities

If you would invest  274.00  in Agricultural Bank of on October 5, 2024 and sell it today you would earn a total of  246.00  from holding Agricultural Bank of or generate 89.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.22%
Values	Daily Returns

Agricultural Bank of  vs.  Caitong Securities Co

Agricultural Bank

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Agricultural Bank of are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Agricultural Bank may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Caitong Securities

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Caitong Securities Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Caitong Securities is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Agricultural Bank and Caitong Securities

The main advantage of trading using opposite Agricultural Bank and Caitong Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Caitong 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 Caitong Securities will offset losses from the drop in Caitong Securities' long position.

The idea behind Agricultural Bank of and Caitong Securities Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.