Correlation Between Agricultural Bank and Belite Bio
Can any of the company-specific risk be diversified away by investing in both Agricultural Bank and Belite Bio 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 Belite Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agricultural Bank and Belite Bio ADR, you can compare the effects of market volatilities on Agricultural Bank and Belite Bio 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 Belite Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Belite Bio.
Diversification Opportunities for Agricultural Bank and Belite Bio
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agricultural and Belite is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank and Belite Bio ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Belite Bio ADR 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 are associated (or correlated) with Belite Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Belite Bio ADR has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Belite Bio go up and down completely randomly.
Pair Corralation between Agricultural Bank and Belite Bio
Assuming the 90 days horizon Agricultural Bank is expected to under-perform the Belite Bio. But the pink sheet apears to be less risky and, when comparing its historical volatility, Agricultural Bank is 1.53 times less risky than Belite Bio. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Belite Bio ADR is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 9,800 in Belite Bio ADR on August 30, 2025 and sell it today you would earn a total of 3,944 from holding Belite Bio ADR or generate 40.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Agricultural Bank vs. Belite Bio ADR
Performance |
| Timeline |
| Agricultural Bank |
| Belite Bio ADR |
Agricultural Bank and Belite Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Belite Bio
The main advantage of trading using opposite Agricultural Bank and Belite Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Belite Bio 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 Belite Bio will offset losses from the drop in Belite Bio's long position.| Agricultural Bank vs. Titan Machinery | Agricultural Bank vs. Takamatsu Construction Group | Agricultural Bank vs. Victura Construction Group | Agricultural Bank vs. Granite Construction Incorporated |
| Belite Bio vs. Lend Lease Group | Belite Bio vs. Home Loan Financial | Belite Bio vs. North American DataCom | Belite Bio vs. Datalex plc |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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