Correlation Between Gemdale Corp and Shenzhen Agricultural
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By analyzing existing cross correlation between Gemdale Corp and Shenzhen Agricultural Products, you can compare the effects of market volatilities on Gemdale Corp and Shenzhen 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 Gemdale Corp with a short position of Shenzhen Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gemdale Corp and Shenzhen Agricultural.
Diversification Opportunities for Gemdale Corp and Shenzhen Agricultural
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gemdale and Shenzhen is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Gemdale Corp and Shenzhen Agricultural Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Agricultural and Gemdale Corp 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 Gemdale Corp are associated (or correlated) with Shenzhen Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Agricultural has no effect on the direction of Gemdale Corp i.e., Gemdale Corp and Shenzhen Agricultural go up and down completely randomly.
Pair Corralation between Gemdale Corp and Shenzhen Agricultural
Assuming the 90 days trading horizon Gemdale Corp is expected to generate 1.04 times more return on investment than Shenzhen Agricultural. However, Gemdale Corp is 1.04 times more volatile than Shenzhen Agricultural Products. It trades about -0.18 of its potential returns per unit of risk. Shenzhen Agricultural Products is currently generating about -0.29 per unit of risk. If you would invest 486.00 in Gemdale Corp on October 18, 2024 and sell it today you would lose (35.00) from holding Gemdale Corp or give up 7.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gemdale Corp vs. Shenzhen Agricultural Products
Performance |
| Timeline |
| Gemdale Corp |
| Shenzhen Agricultural |
Gemdale Corp and Shenzhen Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gemdale Corp and Shenzhen Agricultural
The main advantage of trading using opposite Gemdale Corp and Shenzhen Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gemdale Corp position performs unexpectedly, Shenzhen 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 Shenzhen Agricultural will offset losses from the drop in Shenzhen Agricultural's long position.| Gemdale Corp vs. HaiXin Foods Co | Gemdale Corp vs. Beijing Sanyuan Foods | Gemdale Corp vs. Hainan Haiqi Transportation | Gemdale Corp vs. Qingdao Foods Co |
| Shenzhen Agricultural vs. Western Metal Materials | Shenzhen Agricultural vs. Fibocom Wireless | Shenzhen Agricultural vs. Rising Nonferrous Metals | Shenzhen Agricultural vs. Haima Automobile 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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