Correlation Between Fujian Newland and Gifore Agricultural
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By analyzing existing cross correlation between Fujian Newland Computer and Gifore Agricultural Machinery, you can compare the effects of market volatilities on Fujian Newland 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 Fujian Newland with a short position of Gifore Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Newland and Gifore Agricultural.
Diversification Opportunities for Fujian Newland and Gifore Agricultural
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fujian and Gifore is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Newland Computer and Gifore Agricultural Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gifore Agricultural and Fujian Newland 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 Fujian Newland Computer 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 Fujian Newland i.e., Fujian Newland and Gifore Agricultural go up and down completely randomly.
Pair Corralation between Fujian Newland and Gifore Agricultural
Assuming the 90 days trading horizon Fujian Newland Computer is expected to generate 0.6 times more return on investment than Gifore Agricultural. However, Fujian Newland Computer is 1.67 times less risky than Gifore Agricultural. It trades about -0.27 of its potential returns per unit of risk. Gifore Agricultural Machinery is currently generating about -0.29 per unit of risk. If you would invest 2,186 in Fujian Newland Computer on October 13, 2024 and sell it today you would lose (306.00) from holding Fujian Newland Computer or give up 14.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Newland Computer vs. Gifore Agricultural Machinery
Performance |
| Timeline |
| Fujian Newland Computer |
| Gifore Agricultural |
Fujian Newland and Gifore Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Newland and Gifore Agricultural
The main advantage of trading using opposite Fujian Newland and Gifore Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Newland 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.| Fujian Newland vs. Unisplendour Corp | Fujian Newland vs. Huaxia Fund Management | Fujian Newland vs. Hua Xia Bank | Fujian Newland vs. Jiangsu Financial Leasing |
| Gifore Agricultural vs. Sunwave Communications Co | Gifore Agricultural vs. Zhejiang JIULI Hi tech | Gifore Agricultural vs. Caihong Display Devices | Gifore Agricultural vs. Fujian Newland Computer |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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