Correlation Between Gifore Agricultural and Anhui Huaheng
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By analyzing existing cross correlation between Gifore Agricultural Machinery and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on Gifore Agricultural and Anhui Huaheng 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 Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gifore Agricultural and Anhui Huaheng.
Diversification Opportunities for Gifore Agricultural and Anhui Huaheng
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gifore and Anhui is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Gifore Agricultural Machinery and Anhui Huaheng Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaheng Biotec 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 Anhui Huaheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaheng Biotec has no effect on the direction of Gifore Agricultural i.e., Gifore Agricultural and Anhui Huaheng go up and down completely randomly.
Pair Corralation between Gifore Agricultural and Anhui Huaheng
Assuming the 90 days trading horizon Gifore Agricultural Machinery is expected to generate 2.16 times more return on investment than Anhui Huaheng. However, Gifore Agricultural is 2.16 times more volatile than Anhui Huaheng Biotechnology. It trades about -0.28 of its potential returns per unit of risk. Anhui Huaheng Biotechnology is currently generating about -0.72 per unit of risk. If you would invest 564.00 in Gifore Agricultural Machinery on October 14, 2024 and sell it today you would lose (128.00) from holding Gifore Agricultural Machinery or give up 22.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gifore Agricultural Machinery vs. Anhui Huaheng Biotechnology
Performance |
| Timeline |
| Gifore Agricultural |
| Anhui Huaheng Biotec |
Gifore Agricultural and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gifore Agricultural and Anhui Huaheng
The main advantage of trading using opposite Gifore Agricultural and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gifore Agricultural position performs unexpectedly, Anhui Huaheng 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 Anhui Huaheng will offset losses from the drop in Anhui Huaheng'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 |
| Anhui Huaheng vs. Jiangsu Broadcasting Cable | Anhui Huaheng vs. Gifore Agricultural Machinery | Anhui Huaheng vs. Chongqing Road Bridge | Anhui Huaheng vs. Shenzhen Zhongzhuang Construction |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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