Correlation Between Agricultural Bank and Shuhua Sports
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By analyzing existing cross correlation between Agricultural Bank of and Shuhua Sports Co, you can compare the effects of market volatilities on Agricultural Bank and Shuhua Sports 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 Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Shuhua Sports.
Diversification Opportunities for Agricultural Bank and Shuhua Sports
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agricultural and Shuhua is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports 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 Shuhua Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuhua Sports has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Shuhua Sports go up and down completely randomly.
Pair Corralation between Agricultural Bank and Shuhua Sports
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.5 times more return on investment than Shuhua Sports. However, Agricultural Bank of is 2.02 times less risky than Shuhua Sports. It trades about 0.11 of its potential returns per unit of risk. Shuhua Sports Co is currently generating about 0.0 per unit of risk. If you would invest 274.00 in Agricultural Bank of on October 9, 2024 and sell it today you would earn a total of 245.00 from holding Agricultural Bank of or generate 89.42% 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. Shuhua Sports Co
Performance |
Timeline |
Agricultural Bank |
Shuhua Sports |
Agricultural Bank and Shuhua Sports Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Agricultural Bank and Shuhua Sports
The main advantage of trading using opposite Agricultural Bank and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Shuhua Sports 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 Shuhua Sports will offset losses from the drop in Shuhua Sports' long position.Agricultural Bank vs. Dr Peng Telecom | Agricultural Bank vs. Bangyan Technology Co | Agricultural Bank vs. Holitech Technology Co | Agricultural Bank vs. Sinofibers Technology Co |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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