Correlation Between Gifore Agricultural and Zhejiang Publishing
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By analyzing existing cross correlation between Gifore Agricultural Machinery and Zhejiang Publishing Media, you can compare the effects of market volatilities on Gifore Agricultural and Zhejiang Publishing 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 Zhejiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gifore Agricultural and Zhejiang Publishing.
Diversification Opportunities for Gifore Agricultural and Zhejiang Publishing
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gifore and Zhejiang is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Gifore Agricultural Machinery and Zhejiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Publishing Media 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 Zhejiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Publishing Media has no effect on the direction of Gifore Agricultural i.e., Gifore Agricultural and Zhejiang Publishing go up and down completely randomly.
Pair Corralation between Gifore Agricultural and Zhejiang Publishing
Assuming the 90 days trading horizon Gifore Agricultural Machinery is expected to generate 1.28 times more return on investment than Zhejiang Publishing. However, Gifore Agricultural is 1.28 times more volatile than Zhejiang Publishing Media. It trades about 0.06 of its potential returns per unit of risk. Zhejiang Publishing Media is currently generating about 0.02 per unit of risk. If you would invest 359.00 in Gifore Agricultural Machinery on November 5, 2024 and sell it today you would earn a total of 135.00 from holding Gifore Agricultural Machinery or generate 37.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gifore Agricultural Machinery vs. Zhejiang Publishing Media
Performance |
| Timeline |
| Gifore Agricultural |
| Zhejiang Publishing Media |
Gifore Agricultural and Zhejiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gifore Agricultural and Zhejiang Publishing
The main advantage of trading using opposite Gifore Agricultural and Zhejiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gifore Agricultural position performs unexpectedly, Zhejiang Publishing 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 Zhejiang Publishing will offset losses from the drop in Zhejiang Publishing's long position.| Gifore Agricultural vs. Dhc Software Co | Gifore Agricultural vs. Chengdu Xingrong Investment | Gifore Agricultural vs. Shaanxi Energy Investment | Gifore Agricultural vs. Shenzhen Centralcon Investment |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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