Correlation Between AGRICULTBK HADR/25 and Link Real
Can any of the company-specific risk be diversified away by investing in both AGRICULTBK HADR/25 and Link Real 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 AGRICULTBK HADR/25 and Link Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGRICULTBK HADR25 YC and Link Real Estate, you can compare the effects of market volatilities on AGRICULTBK HADR/25 and Link Real 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 AGRICULTBK HADR/25 with a short position of Link Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICULTBK HADR/25 and Link Real.
Diversification Opportunities for AGRICULTBK HADR/25 and Link Real
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGRICULTBK and Link is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding AGRICULTBK HADR25 YC and Link Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Link Real Estate and AGRICULTBK HADR/25 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 AGRICULTBK HADR25 YC are associated (or correlated) with Link Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Link Real Estate has no effect on the direction of AGRICULTBK HADR/25 i.e., AGRICULTBK HADR/25 and Link Real go up and down completely randomly.
Pair Corralation between AGRICULTBK HADR/25 and Link Real
Assuming the 90 days trading horizon AGRICULTBK HADR/25 is expected to generate 1.85 times less return on investment than Link Real. But when comparing it to its historical volatility, AGRICULTBK HADR25 YC is 1.05 times less risky than Link Real. It trades about 0.1 of its potential returns per unit of risk. Link Real Estate is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 391.00 in Link Real Estate on April 25, 2025 and sell it today you would earn a total of 77.00 from holding Link Real Estate or generate 19.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
AGRICULTBK HADR25 YC vs. Link Real Estate
Performance |
Timeline |
AGRICULTBK HADR/25 |
Link Real Estate |
AGRICULTBK HADR/25 and Link Real Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AGRICULTBK HADR/25 and Link Real
The main advantage of trading using opposite AGRICULTBK HADR/25 and Link Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICULTBK HADR/25 position performs unexpectedly, Link Real 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 Link Real will offset losses from the drop in Link Real's long position.AGRICULTBK HADR/25 vs. INDCOMMBK CHINA ADR20 | AGRICULTBK HADR/25 vs. Industrial and Commercial | AGRICULTBK HADR/25 vs. CHINA BANK ADR20 |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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