Correlation Between Gifore Agricultural and China Merchants
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By analyzing existing cross correlation between Gifore Agricultural Machinery and China Merchants Bank, you can compare the effects of market volatilities on Gifore Agricultural and China Merchants 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 China Merchants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gifore Agricultural and China Merchants.
Diversification Opportunities for Gifore Agricultural and China Merchants
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gifore and China is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Gifore Agricultural Machinery and China Merchants Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Merchants Bank 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 China Merchants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Merchants Bank has no effect on the direction of Gifore Agricultural i.e., Gifore Agricultural and China Merchants go up and down completely randomly.
Pair Corralation between Gifore Agricultural and China Merchants
Assuming the 90 days trading horizon Gifore Agricultural Machinery is expected to generate 1.88 times more return on investment than China Merchants. However, Gifore Agricultural is 1.88 times more volatile than China Merchants Bank. It trades about 0.01 of its potential returns per unit of risk. China Merchants Bank is currently generating about 0.0 per unit of risk. If you would invest 532.00 in Gifore Agricultural Machinery on October 16, 2024 and sell it today you would lose (50.00) from holding Gifore Agricultural Machinery or give up 9.4% 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. China Merchants Bank
Performance |
| Timeline |
| Gifore Agricultural |
| China Merchants Bank |
Gifore Agricultural and China Merchants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gifore Agricultural and China Merchants
The main advantage of trading using opposite Gifore Agricultural and China Merchants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gifore Agricultural position performs unexpectedly, China Merchants 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 China Merchants will offset losses from the drop in China Merchants' 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 |
| China Merchants vs. Shenzhen Zhongzhuang Construction | China Merchants vs. Huasi Agricultural Development | China Merchants vs. Gifore Agricultural Machinery | China Merchants vs. Shuhua Sports Co |
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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