Correlation Between Gifore Agricultural and Luyin Investment
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By analyzing existing cross correlation between Gifore Agricultural Machinery and Luyin Investment Group, you can compare the effects of market volatilities on Gifore Agricultural and Luyin Investment 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 Luyin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gifore Agricultural and Luyin Investment.
Diversification Opportunities for Gifore Agricultural and Luyin Investment
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gifore and Luyin is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Gifore Agricultural Machinery and Luyin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luyin Investment 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 Luyin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luyin Investment has no effect on the direction of Gifore Agricultural i.e., Gifore Agricultural and Luyin Investment go up and down completely randomly.
Pair Corralation between Gifore Agricultural and Luyin Investment
Assuming the 90 days trading horizon Gifore Agricultural Machinery is expected to under-perform the Luyin Investment. In addition to that, Gifore Agricultural is 2.42 times more volatile than Luyin Investment Group. It trades about -0.29 of its total potential returns per unit of risk. Luyin Investment Group is currently generating about -0.45 per unit of volatility. If you would invest 652.00 in Luyin Investment Group on October 13, 2024 and sell it today you would lose (101.00) from holding Luyin Investment Group or give up 15.49% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Gifore Agricultural Machinery vs. Luyin Investment Group
Performance |
Timeline |
Gifore Agricultural |
Luyin Investment |
Gifore Agricultural and Luyin Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gifore Agricultural and Luyin Investment
The main advantage of trading using opposite Gifore Agricultural and Luyin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gifore Agricultural position performs unexpectedly, Luyin Investment 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 Luyin Investment will offset losses from the drop in Luyin Investment's long position.Gifore Agricultural vs. Sunwave Communications Co | Gifore Agricultural vs. Zhejiang JIULI Hi tech | Gifore Agricultural vs. Caihong Display Devices | Gifore Agricultural vs. Fujian Newland Computer |
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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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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