Correlation Between China World and Gifore Agricultural
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By analyzing existing cross correlation between China World Trade and Gifore Agricultural Machinery, you can compare the effects of market volatilities on China World 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 World with a short position of Gifore Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of China World and Gifore Agricultural.
Diversification Opportunities for China World and Gifore Agricultural
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Gifore is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding China World Trade 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 World 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 World Trade 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 World i.e., China World and Gifore Agricultural go up and down completely randomly.
Pair Corralation between China World and Gifore Agricultural
Assuming the 90 days trading horizon China World Trade is expected to generate 0.63 times more return on investment than Gifore Agricultural. However, China World Trade is 1.59 times less risky than Gifore Agricultural. It trades about 0.06 of its potential returns per unit of risk. Gifore Agricultural Machinery is currently generating about 0.02 per unit of risk. If you would invest 1,503 in China World Trade on September 12, 2024 and sell it today you would earn a total of 781.00 from holding China World Trade or generate 51.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China World Trade vs. Gifore Agricultural Machinery
Performance |
| Timeline |
| China World Trade |
| Gifore Agricultural |
China World and Gifore Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China World and Gifore Agricultural
The main advantage of trading using opposite China World and Gifore Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China World 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 World vs. Industrial and Commercial | China World vs. China Construction Bank | China World vs. Bank of China | China World vs. Agricultural Bank of |
| Gifore Agricultural vs. Impulse Qingdao Health | Gifore Agricultural vs. Guangzhou Dongfang Hotel | Gifore Agricultural vs. PKU HealthCare Corp | Gifore Agricultural vs. China World Trade |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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