Correlation Between North Huajin and Gifore Agricultural
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By analyzing existing cross correlation between North Huajin Chemical and Gifore Agricultural Machinery, you can compare the effects of market volatilities on North Huajin and Gifore Agricultural 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 North Huajin with a short position of Gifore Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Huajin and Gifore Agricultural.
Diversification Opportunities for North Huajin and Gifore Agricultural
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between North and Gifore is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding North Huajin Chemical and Gifore Agricultural Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gifore Agricultural and North Huajin 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 North Huajin Chemical are associated (or correlated) with Gifore Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gifore Agricultural has no effect on the direction of North Huajin i.e., North Huajin and Gifore Agricultural go up and down completely randomly.
Pair Corralation between North Huajin and Gifore Agricultural
Assuming the 90 days trading horizon North Huajin Chemical is expected to under-perform the Gifore Agricultural. But the stock apears to be less risky and, when comparing its historical volatility, North Huajin Chemical is 2.0 times less risky than Gifore Agricultural. The stock trades about -0.14 of its potential returns per unit of risk. The Gifore Agricultural Machinery is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 488.00 in Gifore Agricultural Machinery on September 29, 2024 and sell it today you would earn a total of 71.00 from holding Gifore Agricultural Machinery or generate 14.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
North Huajin Chemical vs. Gifore Agricultural Machinery
Performance |
| Timeline |
| North Huajin Chemical |
| Gifore Agricultural |
North Huajin and Gifore Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Huajin and Gifore Agricultural
The main advantage of trading using opposite North Huajin and Gifore Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Huajin position performs unexpectedly, Gifore Agricultural 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 Gifore Agricultural will offset losses from the drop in Gifore Agricultural's long position.| North Huajin vs. Qtone Education Group | North Huajin vs. Zhangjiagang Freetrade Science | North Huajin vs. Beijing Kaiwen Education | North Huajin vs. Gansu Huangtai Wine marketing |
| Gifore Agricultural vs. Sinomach Automobile Co | Gifore Agricultural vs. Uroica Mining Safety | Gifore Agricultural vs. Shanghai Yanpu Metal | Gifore Agricultural vs. Hainan Mining Co |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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