Correlation Between CHINA EDUCATION and AGRICULTBK HADR25
Can any of the company-specific risk be diversified away by investing in both CHINA EDUCATION and AGRICULTBK HADR25 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 CHINA EDUCATION and AGRICULTBK HADR25 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA EDUCATION GROUP and AGRICULTBK HADR25 YC, you can compare the effects of market volatilities on CHINA EDUCATION and AGRICULTBK HADR25 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 CHINA EDUCATION with a short position of AGRICULTBK HADR25. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA EDUCATION and AGRICULTBK HADR25.
Diversification Opportunities for CHINA EDUCATION and AGRICULTBK HADR25
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CHINA and AGRICULTBK is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding CHINA EDUCATION GROUP and AGRICULTBK HADR25 YC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGRICULTBK HADR25 and CHINA EDUCATION 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 CHINA EDUCATION GROUP are associated (or correlated) with AGRICULTBK HADR25. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGRICULTBK HADR25 has no effect on the direction of CHINA EDUCATION i.e., CHINA EDUCATION and AGRICULTBK HADR25 go up and down completely randomly.
Pair Corralation between CHINA EDUCATION and AGRICULTBK HADR25
Assuming the 90 days horizon CHINA EDUCATION GROUP is expected to generate 1.99 times more return on investment than AGRICULTBK HADR25. However, CHINA EDUCATION is 1.99 times more volatile than AGRICULTBK HADR25 YC. It trades about 0.06 of its potential returns per unit of risk. AGRICULTBK HADR25 YC is currently generating about 0.1 per unit of risk. If you would invest 25.00 in CHINA EDUCATION GROUP on September 24, 2024 and sell it today you would earn a total of 16.00 from holding CHINA EDUCATION GROUP or generate 64.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
CHINA EDUCATION GROUP vs. AGRICULTBK HADR25 YC
Performance |
Timeline |
CHINA EDUCATION GROUP |
AGRICULTBK HADR25 |
CHINA EDUCATION and AGRICULTBK HADR25 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CHINA EDUCATION and AGRICULTBK HADR25
The main advantage of trading using opposite CHINA EDUCATION and AGRICULTBK HADR25 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA EDUCATION position performs unexpectedly, AGRICULTBK HADR25 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 AGRICULTBK HADR25 will offset losses from the drop in AGRICULTBK HADR25's long position.CHINA EDUCATION vs. Salesforce | CHINA EDUCATION vs. USWE SPORTS AB | CHINA EDUCATION vs. Carsales | CHINA EDUCATION vs. Yuexiu Transport Infrastructure |
AGRICULTBK HADR25 vs. INDCOMMBK CHINA ADR20 | AGRICULTBK HADR25 vs. Industrial and Commercial | AGRICULTBK HADR25 vs. CHINA BANK ADR20 | AGRICULTBK HADR25 vs. BANK OCHINA H |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |