Correlation Between Xiwang Foodstuffs and Gifore Agricultural
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By analyzing existing cross correlation between Xiwang Foodstuffs Co and Gifore Agricultural Machinery, you can compare the effects of market volatilities on Xiwang Foodstuffs 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 Xiwang Foodstuffs with a short position of Gifore Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiwang Foodstuffs and Gifore Agricultural.
Diversification Opportunities for Xiwang Foodstuffs and Gifore Agricultural
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiwang and Gifore is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Xiwang Foodstuffs Co and Gifore Agricultural Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gifore Agricultural and Xiwang Foodstuffs 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 Xiwang Foodstuffs Co 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 Xiwang Foodstuffs i.e., Xiwang Foodstuffs and Gifore Agricultural go up and down completely randomly.
Pair Corralation between Xiwang Foodstuffs and Gifore Agricultural
Assuming the 90 days trading horizon Xiwang Foodstuffs is expected to generate 6.35 times less return on investment than Gifore Agricultural. In addition to that, Xiwang Foodstuffs is 1.03 times more volatile than Gifore Agricultural Machinery. It trades about 0.0 of its total potential returns per unit of risk. Gifore Agricultural Machinery is currently generating about 0.01 per unit of volatility. If you would invest 510.00 in Gifore Agricultural Machinery on September 4, 2024 and sell it today you would lose (9.00) from holding Gifore Agricultural Machinery or give up 1.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiwang Foodstuffs Co vs. Gifore Agricultural Machinery
Performance |
| Timeline |
| Xiwang Foodstuffs |
| Gifore Agricultural |
Xiwang Foodstuffs and Gifore Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiwang Foodstuffs and Gifore Agricultural
The main advantage of trading using opposite Xiwang Foodstuffs and Gifore Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiwang Foodstuffs 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.| Xiwang Foodstuffs vs. Poly Real Estate | Xiwang Foodstuffs vs. China Vanke Co | Xiwang Foodstuffs vs. China Merchants Shekou | Xiwang Foodstuffs vs. Huafa Industrial Co |
| Gifore Agricultural vs. CareRay Digital Medical | Gifore Agricultural vs. Shaanxi Construction Machinery | Gifore Agricultural vs. Xiangyu Medical Co | Gifore Agricultural vs. Allgens Medical Technology |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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