Correlation Between Anhui Huilong and Gifore Agricultural
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By analyzing existing cross correlation between Anhui Huilong Agricultural and Gifore Agricultural Machinery, you can compare the effects of market volatilities on Anhui Huilong 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 Anhui Huilong with a short position of Gifore Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and Gifore Agricultural.
Diversification Opportunities for Anhui Huilong and Gifore Agricultural
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Gifore is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and Gifore Agricultural Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gifore Agricultural and Anhui Huilong 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 Anhui Huilong Agricultural 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 Anhui Huilong i.e., Anhui Huilong and Gifore Agricultural go up and down completely randomly.
Pair Corralation between Anhui Huilong and Gifore Agricultural
Assuming the 90 days trading horizon Anhui Huilong Agricultural is expected to under-perform the Gifore Agricultural. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Huilong Agricultural is 2.51 times less risky than Gifore Agricultural. The stock trades about -0.42 of its potential returns per unit of risk. The Gifore Agricultural Machinery is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 590.00 in Gifore Agricultural Machinery on October 17, 2024 and sell it today you would lose (92.00) from holding Gifore Agricultural Machinery or give up 15.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huilong Agricultural vs. Gifore Agricultural Machinery
Performance |
| Timeline |
| Anhui Huilong Agricu |
| Gifore Agricultural |
Anhui Huilong and Gifore Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and Gifore Agricultural
The main advantage of trading using opposite Anhui Huilong and Gifore Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong 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.| Anhui Huilong vs. Queclink Wireless Solutions | Anhui Huilong vs. State Grid InformationCommunication | Anhui Huilong vs. Haima Automobile Group | Anhui Huilong vs. China Sports Industry |
| Gifore Agricultural vs. Zhongshan Public Utilities | Gifore Agricultural vs. Zhengzhou Coal Mining | Gifore Agricultural vs. Financial Street Holdings | Gifore Agricultural vs. Peoples Insurance of |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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