Correlation Between Guangdong Jinma and Gifore Agricultural
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By analyzing existing cross correlation between Guangdong Jinma Entertainment and Gifore Agricultural Machinery, you can compare the effects of market volatilities on Guangdong Jinma and Gifore Agricultural 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 Guangdong Jinma with a short position of Gifore Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinma and Gifore Agricultural.
Diversification Opportunities for Guangdong Jinma and Gifore Agricultural
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Gifore is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinma Entertainment and Gifore Agricultural Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gifore Agricultural and Guangdong Jinma 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 Guangdong Jinma Entertainment are associated (or correlated) with Gifore Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gifore Agricultural has no effect on the direction of Guangdong Jinma i.e., Guangdong Jinma and Gifore Agricultural go up and down completely randomly.
Pair Corralation between Guangdong Jinma and Gifore Agricultural
Assuming the 90 days trading horizon Guangdong Jinma Entertainment is expected to under-perform the Gifore Agricultural. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Jinma Entertainment is 1.47 times less risky than Gifore Agricultural. The stock trades about -0.11 of its potential returns per unit of risk. The Gifore Agricultural Machinery is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 476.00 in Gifore Agricultural Machinery on September 28, 2024 and sell it today you would earn a total of 40.00 from holding Gifore Agricultural Machinery or generate 8.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Guangdong Jinma Entertainment vs. Gifore Agricultural Machinery
Performance |
| Timeline |
| Guangdong Jinma Ente |
| Gifore Agricultural |
Guangdong Jinma and Gifore Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jinma and Gifore Agricultural
The main advantage of trading using opposite Guangdong Jinma and Gifore Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinma position performs unexpectedly, Gifore Agricultural 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 Gifore Agricultural will offset losses from the drop in Gifore Agricultural's long position.| Guangdong Jinma vs. Ningbo Jianan Electronics | Guangdong Jinma vs. Eastroc Beverage Group | Guangdong Jinma vs. Guangzhou Zhujiang Brewery | Guangdong Jinma vs. Do Fluoride Chemicals Co |
| Gifore Agricultural vs. Hengdian Entertainment Co | Gifore Agricultural vs. Oppein Home Group | Gifore Agricultural vs. Guangdong Jinma Entertainment | Gifore Agricultural vs. Mengtian Home Group |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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