Correlation Between Gifore Agricultural and Allied Machinery
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gifore Agricultural Machinery and Allied Machinery Co, you can compare the effects of market volatilities on Gifore Agricultural and Allied Machinery 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 Allied Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gifore Agricultural and Allied Machinery.
Diversification Opportunities for Gifore Agricultural and Allied Machinery
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gifore and Allied is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Gifore Agricultural Machinery and Allied Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied Machinery 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 Allied Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Machinery has no effect on the direction of Gifore Agricultural i.e., Gifore Agricultural and Allied Machinery go up and down completely randomly.
Pair Corralation between Gifore Agricultural and Allied Machinery
Assuming the 90 days trading horizon Gifore Agricultural is expected to generate 1.48 times less return on investment than Allied Machinery. In addition to that, Gifore Agricultural is 1.09 times more volatile than Allied Machinery Co. It trades about 0.02 of its total potential returns per unit of risk. Allied Machinery Co is currently generating about 0.03 per unit of volatility. If you would invest 1,805 in Allied Machinery Co on October 30, 2024 and sell it today you would earn a total of 186.00 from holding Allied Machinery Co or generate 10.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gifore Agricultural Machinery vs. Allied Machinery Co
Performance |
| Timeline |
| Gifore Agricultural |
| Allied Machinery |
Gifore Agricultural and Allied Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gifore Agricultural and Allied Machinery
The main advantage of trading using opposite Gifore Agricultural and Allied Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gifore Agricultural position performs unexpectedly, Allied Machinery 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 Allied Machinery will offset losses from the drop in Allied Machinery's long position.| Gifore Agricultural vs. Agricultural Bank of | Gifore Agricultural vs. Industrial and Commercial | Gifore Agricultural vs. Bank of China | Gifore Agricultural vs. China Construction Bank |
| Allied Machinery vs. Hengli Petrochemical Co | Allied Machinery vs. Do Fluoride Chemicals Co | Allied Machinery vs. Maoming Petro Chemical Shihua | Allied Machinery vs. Lier Chemical Co |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |