Correlation Between Gifore Agricultural and China Longyuan
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By analyzing existing cross correlation between Gifore Agricultural Machinery and China Longyuan Power, you can compare the effects of market volatilities on Gifore Agricultural and China Longyuan 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 Gifore Agricultural with a short position of China Longyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gifore Agricultural and China Longyuan.
Diversification Opportunities for Gifore Agricultural and China Longyuan
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gifore and China is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Gifore Agricultural Machinery and China Longyuan Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Longyuan Power and Gifore Agricultural 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 Gifore Agricultural Machinery are associated (or correlated) with China Longyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Longyuan Power has no effect on the direction of Gifore Agricultural i.e., Gifore Agricultural and China Longyuan go up and down completely randomly.
Pair Corralation between Gifore Agricultural and China Longyuan
Assuming the 90 days trading horizon Gifore Agricultural Machinery is expected to generate 1.77 times more return on investment than China Longyuan. However, Gifore Agricultural is 1.77 times more volatile than China Longyuan Power. It trades about 0.02 of its potential returns per unit of risk. China Longyuan Power is currently generating about -0.04 per unit of risk. If you would invest 477.00 in Gifore Agricultural Machinery on November 5, 2024 and sell it today you would earn a total of 17.00 from holding Gifore Agricultural Machinery or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gifore Agricultural Machinery vs. China Longyuan Power
Performance |
| Timeline |
| Gifore Agricultural |
| China Longyuan Power |
Gifore Agricultural and China Longyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gifore Agricultural and China Longyuan
The main advantage of trading using opposite Gifore Agricultural and China Longyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gifore Agricultural position performs unexpectedly, China Longyuan 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 China Longyuan will offset losses from the drop in China Longyuan's long position.| Gifore Agricultural vs. Cabio Biotech Wuhan | Gifore Agricultural vs. Pengxin International Mining | Gifore Agricultural vs. Eastern Air Logistics | Gifore Agricultural vs. XinJiang GuoTong Pipeline |
| China Longyuan vs. Easyhome New Retail | China Longyuan vs. Youngy Health Co | China Longyuan vs. Jiangsu Yanghe Brewery | China Longyuan vs. Impulse Qingdao Health |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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