Correlation Between China Asset and Gifore Agricultural
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By analyzing existing cross correlation between China Asset Management and Gifore Agricultural Machinery, you can compare the effects of market volatilities on China Asset 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 China Asset with a short position of Gifore Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Gifore Agricultural.
Diversification Opportunities for China Asset and Gifore Agricultural
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Gifore is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Gifore Agricultural Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gifore Agricultural and China Asset 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 China Asset Management 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 China Asset i.e., China Asset and Gifore Agricultural go up and down completely randomly.
Pair Corralation between China Asset and Gifore Agricultural
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.36 times more return on investment than Gifore Agricultural. However, China Asset Management is 2.79 times less risky than Gifore Agricultural. It trades about 0.43 of its potential returns per unit of risk. Gifore Agricultural Machinery is currently generating about 0.12 per unit of risk. If you would invest 316.00 in China Asset Management on September 28, 2024 and sell it today you would earn a total of 39.00 from holding China Asset Management or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Gifore Agricultural Machinery
Performance |
| Timeline |
| China Asset Management |
| Gifore Agricultural |
China Asset and Gifore Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Gifore Agricultural
The main advantage of trading using opposite China Asset and Gifore Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset 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.| China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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