Correlation Between Gifore Agricultural and Guangzhou Jointas
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By analyzing existing cross correlation between Gifore Agricultural Machinery and Guangzhou Jointas Chemical, you can compare the effects of market volatilities on Gifore Agricultural and Guangzhou Jointas 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 Guangzhou Jointas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gifore Agricultural and Guangzhou Jointas.
Diversification Opportunities for Gifore Agricultural and Guangzhou Jointas
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gifore and Guangzhou is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Gifore Agricultural Machinery and Guangzhou Jointas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jointas 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 Guangzhou Jointas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jointas has no effect on the direction of Gifore Agricultural i.e., Gifore Agricultural and Guangzhou Jointas go up and down completely randomly.
Pair Corralation between Gifore Agricultural and Guangzhou Jointas
Assuming the 90 days trading horizon Gifore Agricultural Machinery is expected to generate 1.06 times more return on investment than Guangzhou Jointas. However, Gifore Agricultural is 1.06 times more volatile than Guangzhou Jointas Chemical. It trades about 0.18 of its potential returns per unit of risk. Guangzhou Jointas Chemical is currently generating about -0.06 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gifore Agricultural Machinery vs. Guangzhou Jointas Chemical
Performance |
| Timeline |
| Gifore Agricultural |
| Guangzhou Jointas |
Gifore Agricultural and Guangzhou Jointas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gifore Agricultural and Guangzhou Jointas
The main advantage of trading using opposite Gifore Agricultural and Guangzhou Jointas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gifore Agricultural position performs unexpectedly, Guangzhou Jointas 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 Guangzhou Jointas will offset losses from the drop in Guangzhou Jointas' 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 |
| Guangzhou Jointas vs. Jiaozuo Wanfang Aluminum | Guangzhou Jointas vs. Ye Chiu Metal | Guangzhou Jointas vs. Western Metal Materials | Guangzhou Jointas vs. Tongyu Communication |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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