Correlation Between Guangzhou Jointas and Gifore Agricultural
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By analyzing existing cross correlation between Guangzhou Jointas Chemical and Gifore Agricultural Machinery, you can compare the effects of market volatilities on Guangzhou Jointas 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 Guangzhou Jointas with a short position of Gifore Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and Gifore Agricultural.
Diversification Opportunities for Guangzhou Jointas and Gifore Agricultural
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Gifore is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas 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 Guangzhou Jointas 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 Guangzhou Jointas 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 Guangzhou Jointas i.e., Guangzhou Jointas and Gifore Agricultural go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and Gifore Agricultural
Assuming the 90 days trading horizon Guangzhou Jointas Chemical is expected to generate 0.73 times more return on investment than Gifore Agricultural. However, Guangzhou Jointas Chemical is 1.37 times less risky than Gifore Agricultural. It trades about -0.17 of its potential returns per unit of risk. Gifore Agricultural Machinery is currently generating about -0.14 per unit of risk. If you would invest 583.00 in Guangzhou Jointas Chemical on October 17, 2024 and sell it today you would lose (76.00) from holding Guangzhou Jointas Chemical or give up 13.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jointas Chemical vs. Gifore Agricultural Machinery
Performance |
| Timeline |
| Guangzhou Jointas |
| Gifore Agricultural |
Guangzhou Jointas and Gifore Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jointas and Gifore Agricultural
The main advantage of trading using opposite Guangzhou Jointas and Gifore Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas 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.| Guangzhou Jointas vs. Zijin Mining Group | Guangzhou Jointas vs. Wanhua Chemical Group | Guangzhou Jointas vs. Baoshan Iron Steel | Guangzhou Jointas vs. Shandong Gold Mining |
| 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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