Correlation Between Gifore Agricultural and Kangping Technology
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By analyzing existing cross correlation between Gifore Agricultural Machinery and Kangping Technology Co, you can compare the effects of market volatilities on Gifore Agricultural and Kangping Technology 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 Kangping Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gifore Agricultural and Kangping Technology.
Diversification Opportunities for Gifore Agricultural and Kangping Technology
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gifore and Kangping is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Gifore Agricultural Machinery and Kangping Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangping Technology 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 Kangping Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangping Technology has no effect on the direction of Gifore Agricultural i.e., Gifore Agricultural and Kangping Technology go up and down completely randomly.
Pair Corralation between Gifore Agricultural and Kangping Technology
Assuming the 90 days trading horizon Gifore Agricultural Machinery is expected to generate 1.5 times more return on investment than Kangping Technology. However, Gifore Agricultural is 1.5 times more volatile than Kangping Technology Co. It trades about 0.24 of its potential returns per unit of risk. Kangping Technology Co is currently generating about 0.18 per unit of risk. If you would invest 495.00 in Gifore Agricultural Machinery on September 14, 2024 and sell it today you would earn a total of 76.00 from holding Gifore Agricultural Machinery or generate 15.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gifore Agricultural Machinery vs. Kangping Technology Co
Performance |
| Timeline |
| Gifore Agricultural |
| Kangping Technology |
Gifore Agricultural and Kangping Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gifore Agricultural and Kangping Technology
The main advantage of trading using opposite Gifore Agricultural and Kangping Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gifore Agricultural position performs unexpectedly, Kangping Technology 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 Kangping Technology will offset losses from the drop in Kangping Technology's long position.| Gifore Agricultural vs. China Petroleum Chemical | Gifore Agricultural vs. PetroChina Co Ltd | Gifore Agricultural vs. China State Construction | Gifore Agricultural vs. China Railway Group |
| Kangping Technology vs. Guangdong Jinming Machinery | Kangping Technology vs. Shaanxi Meineng Clean | Kangping Technology vs. Gifore Agricultural Machinery | Kangping Technology vs. Eastroc Beverage Group |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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