Correlation Between Gifore Agricultural and Huasi Agricultural
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By analyzing existing cross correlation between Gifore Agricultural Machinery and Huasi Agricultural Development, you can compare the effects of market volatilities on Gifore Agricultural and Huasi 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 Gifore Agricultural with a short position of Huasi Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gifore Agricultural and Huasi Agricultural.
Diversification Opportunities for Gifore Agricultural and Huasi Agricultural
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gifore and Huasi is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Gifore Agricultural Machinery and Huasi Agricultural Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huasi Agricultural 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 Huasi Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huasi Agricultural has no effect on the direction of Gifore Agricultural i.e., Gifore Agricultural and Huasi Agricultural go up and down completely randomly.
Pair Corralation between Gifore Agricultural and Huasi Agricultural
Assuming the 90 days trading horizon Gifore Agricultural Machinery is expected to generate 0.86 times more return on investment than Huasi Agricultural. However, Gifore Agricultural Machinery is 1.16 times less risky than Huasi Agricultural. It trades about 0.18 of its potential returns per unit of risk. Huasi Agricultural Development is currently generating about -0.05 per unit of risk. If you would invest 488.00 in Gifore Agricultural Machinery on September 29, 2024 and sell it today you would earn a total of 71.00 from holding Gifore Agricultural Machinery or generate 14.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gifore Agricultural Machinery vs. Huasi Agricultural Development
Performance |
| Timeline |
| Gifore Agricultural |
| Huasi Agricultural |
Gifore Agricultural and Huasi Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gifore Agricultural and Huasi Agricultural
The main advantage of trading using opposite Gifore Agricultural and Huasi Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gifore Agricultural position performs unexpectedly, Huasi 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 Huasi Agricultural will offset losses from the drop in Huasi Agricultural's long position.| Gifore Agricultural vs. Sinomach Automobile Co | Gifore Agricultural vs. Uroica Mining Safety | Gifore Agricultural vs. Shanghai Yanpu Metal | Gifore Agricultural vs. Hainan Mining Co |
| Huasi Agricultural vs. Agricultural Bank of | Huasi Agricultural vs. Industrial and Commercial | Huasi Agricultural vs. Bank of China | Huasi Agricultural vs. China Construction Bank |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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