Correlation Between Gifore Agricultural and Ningbo Jianan
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By analyzing existing cross correlation between Gifore Agricultural Machinery and Ningbo Jianan Electronics, you can compare the effects of market volatilities on Gifore Agricultural and Ningbo Jianan 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 Ningbo Jianan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gifore Agricultural and Ningbo Jianan.
Diversification Opportunities for Gifore Agricultural and Ningbo Jianan
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gifore and Ningbo is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Gifore Agricultural Machinery and Ningbo Jianan Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jianan Electronics 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 Ningbo Jianan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jianan Electronics has no effect on the direction of Gifore Agricultural i.e., Gifore Agricultural and Ningbo Jianan go up and down completely randomly.
Pair Corralation between Gifore Agricultural and Ningbo Jianan
Assuming the 90 days trading horizon Gifore Agricultural Machinery is expected to under-perform the Ningbo Jianan. In addition to that, Gifore Agricultural is 1.55 times more volatile than Ningbo Jianan Electronics. It trades about -0.36 of its total potential returns per unit of risk. Ningbo Jianan Electronics is currently generating about -0.32 per unit of volatility. If you would invest 2,377 in Ningbo Jianan Electronics on October 15, 2024 and sell it today you would lose (374.00) from holding Ningbo Jianan Electronics or give up 15.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gifore Agricultural Machinery vs. Ningbo Jianan Electronics
Performance |
| Timeline |
| Gifore Agricultural |
| Ningbo Jianan Electronics |
Gifore Agricultural and Ningbo Jianan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gifore Agricultural and Ningbo Jianan
The main advantage of trading using opposite Gifore Agricultural and Ningbo Jianan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gifore Agricultural position performs unexpectedly, Ningbo Jianan 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 Ningbo Jianan will offset losses from the drop in Ningbo Jianan's long position.| Gifore Agricultural vs. Huizhou Speed Wireless | Gifore Agricultural vs. China Mobile Limited | Gifore Agricultural vs. Quectel Wireless Solutions | Gifore Agricultural vs. Runjian Communication Co |
| Ningbo Jianan vs. Kuang Chi Technologies | Ningbo Jianan vs. Lotus Health Group | Ningbo Jianan vs. FSPG Hi Tech Co | Ningbo Jianan vs. Unisplendour Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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