Correlation Between Gifore Agricultural and Shanghai Jinfeng
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By analyzing existing cross correlation between Gifore Agricultural Machinery and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Gifore Agricultural and Shanghai Jinfeng 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 Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gifore Agricultural and Shanghai Jinfeng.
Diversification Opportunities for Gifore Agricultural and Shanghai Jinfeng
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gifore and Shanghai is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Gifore Agricultural Machinery and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine 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 Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Gifore Agricultural i.e., Gifore Agricultural and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Gifore Agricultural and Shanghai Jinfeng
Assuming the 90 days trading horizon Gifore Agricultural Machinery is expected to generate 1.14 times more return on investment than Shanghai Jinfeng. However, Gifore Agricultural is 1.14 times more volatile than Shanghai Jinfeng Wine. It trades about 0.13 of its potential returns per unit of risk. Shanghai Jinfeng Wine is currently generating about 0.09 per unit of risk. If you would invest 363.00 in Gifore Agricultural Machinery on October 18, 2024 and sell it today you would earn a total of 153.00 from holding Gifore Agricultural Machinery or generate 42.15% 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. Shanghai Jinfeng Wine
Performance |
| Timeline |
| Gifore Agricultural |
| Shanghai Jinfeng Wine |
Gifore Agricultural and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gifore Agricultural and Shanghai Jinfeng
The main advantage of trading using opposite Gifore Agricultural and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gifore Agricultural position performs unexpectedly, Shanghai Jinfeng 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 Shanghai Jinfeng will offset losses from the drop in Shanghai Jinfeng'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 |
| Shanghai Jinfeng vs. Ping An Insurance | Shanghai Jinfeng vs. Weichai Heavy Machinery | Shanghai Jinfeng vs. Gifore Agricultural Machinery | Shanghai Jinfeng vs. Shaanxi Construction Machinery |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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