Correlation Between Fujian Nanwang and Gifore Agricultural
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fujian Nanwang Environment and Gifore Agricultural Machinery, you can compare the effects of market volatilities on Fujian Nanwang 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 Fujian Nanwang with a short position of Gifore Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and Gifore Agricultural.
Diversification Opportunities for Fujian Nanwang and Gifore Agricultural
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fujian and Gifore is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment and Gifore Agricultural Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gifore Agricultural and Fujian Nanwang 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 Fujian Nanwang Environment 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 Fujian Nanwang i.e., Fujian Nanwang and Gifore Agricultural go up and down completely randomly.
Pair Corralation between Fujian Nanwang and Gifore Agricultural
Assuming the 90 days trading horizon Fujian Nanwang Environment is expected to under-perform the Gifore Agricultural. But the stock apears to be less risky and, when comparing its historical volatility, Fujian Nanwang Environment is 1.07 times less risky than Gifore Agricultural. The stock trades about -0.04 of its potential returns per unit of risk. The Gifore Agricultural Machinery is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 532.00 in Gifore Agricultural Machinery on October 18, 2024 and sell it today you would lose (16.00) from holding Gifore Agricultural Machinery or give up 3.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 81.08% |
| Values | Daily Returns |
Fujian Nanwang Environment vs. Gifore Agricultural Machinery
Performance |
| Timeline |
| Fujian Nanwang Envir |
| Gifore Agricultural |
Fujian Nanwang and Gifore Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Nanwang and Gifore Agricultural
The main advantage of trading using opposite Fujian Nanwang and Gifore Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang 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.| Fujian Nanwang vs. China Minmetals Rare | Fujian Nanwang vs. Jahen Household Products | Fujian Nanwang vs. Hainan Mining Co | Fujian Nanwang vs. Hefei Metalforming Mach |
| Gifore Agricultural vs. Tieling Newcity Investment | Gifore Agricultural vs. Henan Shuanghui Investment | Gifore Agricultural vs. Jointo Energy Investment | Gifore Agricultural vs. Fujian Nanwang Environment |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |