Correlation Between Gifore Agricultural and Liuzhou Chemical
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By analyzing existing cross correlation between Gifore Agricultural Machinery and Liuzhou Chemical Industry, you can compare the effects of market volatilities on Gifore Agricultural and Liuzhou Chemical 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 Liuzhou Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gifore Agricultural and Liuzhou Chemical.
Diversification Opportunities for Gifore Agricultural and Liuzhou Chemical
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gifore and Liuzhou is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Gifore Agricultural Machinery and Liuzhou Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liuzhou Chemical Industry 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 Liuzhou Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liuzhou Chemical Industry has no effect on the direction of Gifore Agricultural i.e., Gifore Agricultural and Liuzhou Chemical go up and down completely randomly.
Pair Corralation between Gifore Agricultural and Liuzhou Chemical
Assuming the 90 days trading horizon Gifore Agricultural Machinery is expected to under-perform the Liuzhou Chemical. In addition to that, Gifore Agricultural is 1.09 times more volatile than Liuzhou Chemical Industry. It trades about -0.14 of its total potential returns per unit of risk. Liuzhou Chemical Industry is currently generating about 0.04 per unit of volatility. If you would invest 333.00 in Liuzhou Chemical Industry on October 17, 2024 and sell it today you would earn a total of 6.00 from holding Liuzhou Chemical Industry or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gifore Agricultural Machinery vs. Liuzhou Chemical Industry
Performance |
| Timeline |
| Gifore Agricultural |
| Liuzhou Chemical Industry |
Gifore Agricultural and Liuzhou Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gifore Agricultural and Liuzhou Chemical
The main advantage of trading using opposite Gifore Agricultural and Liuzhou Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gifore Agricultural position performs unexpectedly, Liuzhou Chemical 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 Liuzhou Chemical will offset losses from the drop in Liuzhou Chemical's long position.| Gifore Agricultural vs. Zhongshan Public Utilities | Gifore Agricultural vs. Zhengzhou Coal Mining | Gifore Agricultural vs. Financial Street Holdings | Gifore Agricultural vs. Peoples Insurance of |
| Liuzhou Chemical vs. Hunan Investment Group | Liuzhou Chemical vs. Eastroc Beverage Group | Liuzhou Chemical vs. StarPower Semiconductor | Liuzhou Chemical vs. Thinkon Semiconductor Jinzhou |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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