Correlation Between Gifore Agricultural and Zhejiang Tailin
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By analyzing existing cross correlation between Gifore Agricultural Machinery and Zhejiang Tailin Bioengineering, you can compare the effects of market volatilities on Gifore Agricultural and Zhejiang Tailin 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 Zhejiang Tailin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gifore Agricultural and Zhejiang Tailin.
Diversification Opportunities for Gifore Agricultural and Zhejiang Tailin
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gifore and Zhejiang is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Gifore Agricultural Machinery and Zhejiang Tailin Bioengineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Tailin Bioe 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 Zhejiang Tailin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Tailin Bioe has no effect on the direction of Gifore Agricultural i.e., Gifore Agricultural and Zhejiang Tailin go up and down completely randomly.
Pair Corralation between Gifore Agricultural and Zhejiang Tailin
Assuming the 90 days trading horizon Gifore Agricultural Machinery is expected to generate 0.81 times more return on investment than Zhejiang Tailin. However, Gifore Agricultural Machinery is 1.23 times less risky than Zhejiang Tailin. It trades about 0.01 of its potential returns per unit of risk. Zhejiang Tailin Bioengineering is currently generating about -0.01 per unit of risk. If you would invest 509.00 in Gifore Agricultural Machinery on October 30, 2024 and sell it today you would lose (15.00) from holding Gifore Agricultural Machinery or give up 2.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gifore Agricultural Machinery vs. Zhejiang Tailin Bioengineering
Performance |
| Timeline |
| Gifore Agricultural |
| Zhejiang Tailin Bioe |
Gifore Agricultural and Zhejiang Tailin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gifore Agricultural and Zhejiang Tailin
The main advantage of trading using opposite Gifore Agricultural and Zhejiang Tailin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gifore Agricultural position performs unexpectedly, Zhejiang Tailin 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 Zhejiang Tailin will offset losses from the drop in Zhejiang Tailin's long position.| Gifore Agricultural vs. Agricultural Bank of | Gifore Agricultural vs. Industrial and Commercial | Gifore Agricultural vs. Bank of China | Gifore Agricultural vs. China Construction Bank |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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