Correlation Between Agricultural Bank and SIEM OFFSHORE

Can any of the company-specific risk be diversified away by investing in both Agricultural Bank and SIEM OFFSHORE 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 SIEM OFFSHORE 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 SIEM OFFSHORE NEW, you can compare the effects of market volatilities on Agricultural Bank and SIEM OFFSHORE 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 SIEM OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and SIEM OFFSHORE.

Diversification Opportunities for Agricultural Bank and SIEM OFFSHORE

0.88

Correlation Coefficient

Agricultural Bank  SIEM OFFSHORE

Very poor diversification

The 3 months correlation between Agricultural and SIEM is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and SIEM OFFSHORE NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIEM OFFSHORE NEW 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 SIEM OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIEM OFFSHORE NEW has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and SIEM OFFSHORE go up and down completely randomly.

Pair Corralation between Agricultural Bank and SIEM OFFSHORE

Assuming the 90 days horizon Agricultural Bank is expected to generate 2.51 times less return on investment than SIEM OFFSHORE. But when comparing it to its historical volatility, Agricultural Bank of is 1.46 times less risky than SIEM OFFSHORE. It trades about 0.14 of its potential returns per unit of risk. SIEM OFFSHORE NEW is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  154.00  in SIEM OFFSHORE NEW on April 7, 2025 and sell it today you would earn a total of  57.00  from holding SIEM OFFSHORE NEW or generate 37.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Agricultural Bank of  vs.  SIEM OFFSHORE NEW

Agricultural Bank

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Agricultural Bank of are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Agricultural Bank reported solid returns over the last few months and may actually be approaching a breakup point.

SIEM OFFSHORE NEW

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SIEM OFFSHORE NEW are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical indicators, SIEM OFFSHORE reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Agricultural Bank and SIEM OFFSHORE

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

The idea behind Agricultural Bank of and SIEM OFFSHORE NEW 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 Transaction History module to view history of all your transactions and understand their impact on performance.