Correlation Between Gifore Agricultural and Shenzhen Inovance
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By analyzing existing cross correlation between Gifore Agricultural Machinery and Shenzhen Inovance Tech, you can compare the effects of market volatilities on Gifore Agricultural and Shenzhen Inovance 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 Shenzhen Inovance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gifore Agricultural and Shenzhen Inovance.
Diversification Opportunities for Gifore Agricultural and Shenzhen Inovance
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gifore and Shenzhen is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Gifore Agricultural Machinery and Shenzhen Inovance Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Inovance Tech 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 Shenzhen Inovance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Inovance Tech has no effect on the direction of Gifore Agricultural i.e., Gifore Agricultural and Shenzhen Inovance go up and down completely randomly.
Pair Corralation between Gifore Agricultural and Shenzhen Inovance
Assuming the 90 days trading horizon Gifore Agricultural Machinery is expected to generate 1.2 times more return on investment than Shenzhen Inovance. However, Gifore Agricultural is 1.2 times more volatile than Shenzhen Inovance Tech. It trades about 0.03 of its potential returns per unit of risk. Shenzhen Inovance Tech is currently generating about 0.0 per unit of risk. If you would invest 478.00 in Gifore Agricultural Machinery on September 28, 2024 and sell it today you would earn a total of 81.00 from holding Gifore Agricultural Machinery or generate 16.95% 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. Shenzhen Inovance Tech
Performance |
| Timeline |
| Gifore Agricultural |
| Shenzhen Inovance Tech |
Gifore Agricultural and Shenzhen Inovance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gifore Agricultural and Shenzhen Inovance
The main advantage of trading using opposite Gifore Agricultural and Shenzhen Inovance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gifore Agricultural position performs unexpectedly, Shenzhen Inovance 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 Shenzhen Inovance will offset losses from the drop in Shenzhen Inovance's long position.| Gifore Agricultural vs. Hengdian Entertainment Co | Gifore Agricultural vs. Oppein Home Group | Gifore Agricultural vs. Guangdong Jinma Entertainment | Gifore Agricultural vs. Mengtian Home Group |
| Shenzhen Inovance vs. BeiGene | Shenzhen Inovance vs. Kweichow Moutai Co | Shenzhen Inovance vs. Beijing Roborock Technology | Shenzhen Inovance vs. G bits Network Technology |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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