Correlation Between Gifore Agricultural and Zhengping RoadBridge
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By analyzing existing cross correlation between Gifore Agricultural Machinery and Zhengping RoadBridge Constr, you can compare the effects of market volatilities on Gifore Agricultural and Zhengping RoadBridge 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 Zhengping RoadBridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gifore Agricultural and Zhengping RoadBridge.
Diversification Opportunities for Gifore Agricultural and Zhengping RoadBridge
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gifore and Zhengping is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Gifore Agricultural Machinery and Zhengping RoadBridge Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengping RoadBridge 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 Zhengping RoadBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengping RoadBridge has no effect on the direction of Gifore Agricultural i.e., Gifore Agricultural and Zhengping RoadBridge go up and down completely randomly.
Pair Corralation between Gifore Agricultural and Zhengping RoadBridge
Assuming the 90 days trading horizon Gifore Agricultural is expected to generate 16.37 times less return on investment than Zhengping RoadBridge. But when comparing it to its historical volatility, Gifore Agricultural Machinery is 1.27 times less risky than Zhengping RoadBridge. It trades about 0.01 of its potential returns per unit of risk. Zhengping RoadBridge Constr is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 280.00 in Zhengping RoadBridge Constr on October 14, 2024 and sell it today you would earn a total of 86.00 from holding Zhengping RoadBridge Constr or generate 30.71% 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. Zhengping RoadBridge Constr
Performance |
| Timeline |
| Gifore Agricultural |
| Zhengping RoadBridge |
Gifore Agricultural and Zhengping RoadBridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gifore Agricultural and Zhengping RoadBridge
The main advantage of trading using opposite Gifore Agricultural and Zhengping RoadBridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gifore Agricultural position performs unexpectedly, Zhengping RoadBridge 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 Zhengping RoadBridge will offset losses from the drop in Zhengping RoadBridge's long position.| Gifore Agricultural vs. Xiangyang Automobile Bearing | Gifore Agricultural vs. CITIC Metal Co | Gifore Agricultural vs. Haima Automobile Group | Gifore Agricultural vs. ZYF Lopsking Aluminum |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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