Correlation Between Guangdong Jinma and Agricultural Bank
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By analyzing existing cross correlation between Guangdong Jinma Entertainment and Agricultural Bank of, you can compare the effects of market volatilities on Guangdong Jinma and Agricultural Bank 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 Guangdong Jinma with a short position of Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinma and Agricultural Bank.
Diversification Opportunities for Guangdong Jinma and Agricultural Bank
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Agricultural is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinma Entertainment and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank and Guangdong Jinma 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 Guangdong Jinma Entertainment are associated (or correlated) with Agricultural Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agricultural Bank has no effect on the direction of Guangdong Jinma i.e., Guangdong Jinma and Agricultural Bank go up and down completely randomly.
Pair Corralation between Guangdong Jinma and Agricultural Bank
Assuming the 90 days trading horizon Guangdong Jinma is expected to generate 2.63 times less return on investment than Agricultural Bank. In addition to that, Guangdong Jinma is 2.47 times more volatile than Agricultural Bank of. It trades about 0.02 of its total potential returns per unit of risk. Agricultural Bank of is currently generating about 0.11 per unit of volatility. If you would invest 272.00 in Agricultural Bank of on September 24, 2024 and sell it today you would earn a total of 232.00 from holding Agricultural Bank of or generate 85.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Jinma Entertainment vs. Agricultural Bank of
Performance |
Timeline |
Guangdong Jinma Ente |
Agricultural Bank |
Guangdong Jinma and Agricultural Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Jinma and Agricultural Bank
The main advantage of trading using opposite Guangdong Jinma and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinma position performs unexpectedly, Agricultural Bank 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 Agricultural Bank will offset losses from the drop in Agricultural Bank's long position.Guangdong Jinma vs. PetroChina Co Ltd | Guangdong Jinma vs. China Mobile Limited | Guangdong Jinma vs. CNOOC Limited | Guangdong Jinma vs. Ping An Insurance |
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 |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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