Correlation Between Agricultural Bank and RoadMain T
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By analyzing existing cross correlation between Agricultural Bank of and RoadMain T Co, you can compare the effects of market volatilities on Agricultural Bank and RoadMain T 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 RoadMain T. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and RoadMain T.
Diversification Opportunities for Agricultural Bank and RoadMain T
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agricultural and RoadMain is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and RoadMain T Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RoadMain T 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 RoadMain T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RoadMain T has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and RoadMain T go up and down completely randomly.
Pair Corralation between Agricultural Bank and RoadMain T
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.54 times more return on investment than RoadMain T. However, Agricultural Bank of is 1.84 times less risky than RoadMain T. It trades about 0.08 of its potential returns per unit of risk. RoadMain T Co is currently generating about -0.02 per unit of risk. If you would invest 485.00 in Agricultural Bank of on November 28, 2024 and sell it today you would earn a total of 26.00 from holding Agricultural Bank of or generate 5.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.28% |
Values | Daily Returns |
Agricultural Bank of vs. RoadMain T Co
Performance |
Timeline |
Agricultural Bank |
RoadMain T |
Agricultural Bank and RoadMain T Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Agricultural Bank and RoadMain T
The main advantage of trading using opposite Agricultural Bank and RoadMain T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, RoadMain T 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 RoadMain T will offset losses from the drop in RoadMain T's long position.Agricultural Bank vs. Soochow Suzhou Industrial | Agricultural Bank vs. Lootom Telcovideo Network | Agricultural Bank vs. Zhengzhou Coal Mining | Agricultural Bank vs. Tianjin Pengling Rubber |
RoadMain T vs. China World Trade | RoadMain T vs. Guangxi Wuzhou Communications | RoadMain T vs. Kailong High Technology | RoadMain T vs. Wintao Communications 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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