Correlation Between Zhejiang Yayi and Gifore Agricultural
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By analyzing existing cross correlation between Zhejiang Yayi Metal and Gifore Agricultural Machinery, you can compare the effects of market volatilities on Zhejiang Yayi 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 Zhejiang Yayi with a short position of Gifore Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and Gifore Agricultural.
Diversification Opportunities for Zhejiang Yayi and Gifore Agricultural
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhejiang and Gifore is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal and Gifore Agricultural Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gifore Agricultural and Zhejiang Yayi 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 Zhejiang Yayi Metal 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 Zhejiang Yayi i.e., Zhejiang Yayi and Gifore Agricultural go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and Gifore Agricultural
Assuming the 90 days trading horizon Zhejiang Yayi Metal is expected to generate 1.26 times more return on investment than Gifore Agricultural. However, Zhejiang Yayi is 1.26 times more volatile than Gifore Agricultural Machinery. It trades about 0.01 of its potential returns per unit of risk. Gifore Agricultural Machinery is currently generating about 0.01 per unit of risk. If you would invest 3,004 in Zhejiang Yayi Metal on September 3, 2024 and sell it today you would lose (331.00) from holding Zhejiang Yayi Metal or give up 11.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yayi Metal vs. Gifore Agricultural Machinery
Performance |
| Timeline |
| Zhejiang Yayi Metal |
| Gifore Agricultural |
Zhejiang Yayi and Gifore Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yayi and Gifore Agricultural
The main advantage of trading using opposite Zhejiang Yayi and Gifore Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi 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.| Zhejiang Yayi vs. Ningxia Building Materials | Zhejiang Yayi vs. Super Dragon Engineering Plastics | Zhejiang Yayi vs. Dawning Information Industry | Zhejiang Yayi vs. Xinke Material |
| Gifore Agricultural vs. Xiwang Foodstuffs Co | Gifore Agricultural vs. Tianshan Aluminum Group | Gifore Agricultural vs. Zhejiang Yayi Metal | Gifore Agricultural vs. Suzhou Weizhixiang Food |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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