Correlation Between Gifore Agricultural and Xian Sunresin
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By analyzing existing cross correlation between Gifore Agricultural Machinery and Xian Sunresin New, you can compare the effects of market volatilities on Gifore Agricultural and Xian Sunresin 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 Xian Sunresin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gifore Agricultural and Xian Sunresin.
Diversification Opportunities for Gifore Agricultural and Xian Sunresin
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gifore and Xian is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Gifore Agricultural Machinery and Xian Sunresin New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian Sunresin New 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 Xian Sunresin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian Sunresin New has no effect on the direction of Gifore Agricultural i.e., Gifore Agricultural and Xian Sunresin go up and down completely randomly.
Pair Corralation between Gifore Agricultural and Xian Sunresin
Assuming the 90 days trading horizon Gifore Agricultural Machinery is expected to generate 1.07 times more return on investment than Xian Sunresin. However, Gifore Agricultural is 1.07 times more volatile than Xian Sunresin New. It trades about 0.03 of its potential returns per unit of risk. Xian Sunresin New is currently generating about 0.02 per unit of risk. If you would invest 490.00 in Gifore Agricultural Machinery on September 12, 2024 and sell it today you would earn a total of 62.00 from holding Gifore Agricultural Machinery or generate 12.65% 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. Xian Sunresin New
Performance |
| Timeline |
| Gifore Agricultural |
| Xian Sunresin New |
Gifore Agricultural and Xian Sunresin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gifore Agricultural and Xian Sunresin
The main advantage of trading using opposite Gifore Agricultural and Xian Sunresin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gifore Agricultural position performs unexpectedly, Xian Sunresin 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 Xian Sunresin will offset losses from the drop in Xian Sunresin's long position.| Gifore Agricultural vs. Impulse Qingdao Health | Gifore Agricultural vs. Guangzhou Dongfang Hotel | Gifore Agricultural vs. PKU HealthCare Corp | Gifore Agricultural vs. China World Trade |
| Xian Sunresin vs. Nexchip Semiconductor Corp | Xian Sunresin vs. Hongrun Construction Group | Xian Sunresin vs. Gifore Agricultural Machinery | Xian Sunresin vs. Semiconductor Manufacturing Electronics |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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