Correlation Between Liuzhou Chemical and Gifore Agricultural
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By analyzing existing cross correlation between Liuzhou Chemical Industry and Gifore Agricultural Machinery, you can compare the effects of market volatilities on Liuzhou Chemical 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 Liuzhou Chemical with a short position of Gifore Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liuzhou Chemical and Gifore Agricultural.
Diversification Opportunities for Liuzhou Chemical and Gifore Agricultural
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Liuzhou and Gifore is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Liuzhou Chemical Industry and Gifore Agricultural Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gifore Agricultural and Liuzhou Chemical 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 Liuzhou Chemical Industry 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 Liuzhou Chemical i.e., Liuzhou Chemical and Gifore Agricultural go up and down completely randomly.
Pair Corralation between Liuzhou Chemical and Gifore Agricultural
Assuming the 90 days trading horizon Liuzhou Chemical Industry is expected to generate 0.92 times more return on investment than Gifore Agricultural. However, Liuzhou Chemical Industry is 1.09 times less risky than Gifore Agricultural. It trades about 0.04 of its potential returns per unit of risk. Gifore Agricultural Machinery is currently generating about -0.14 per unit of risk. If you would invest 333.00 in Liuzhou Chemical Industry on October 17, 2024 and sell it today you would earn a total of 6.00 from holding Liuzhou Chemical Industry or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liuzhou Chemical Industry vs. Gifore Agricultural Machinery
Performance |
| Timeline |
| Liuzhou Chemical Industry |
| Gifore Agricultural |
Liuzhou Chemical and Gifore Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liuzhou Chemical and Gifore Agricultural
The main advantage of trading using opposite Liuzhou Chemical and Gifore Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liuzhou Chemical 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.| Liuzhou Chemical vs. Hunan Investment Group | Liuzhou Chemical vs. Eastroc Beverage Group | Liuzhou Chemical vs. StarPower Semiconductor | Liuzhou Chemical vs. Thinkon Semiconductor Jinzhou |
| Gifore Agricultural vs. Zhongshan Public Utilities | Gifore Agricultural vs. Zhengzhou Coal Mining | Gifore Agricultural vs. Financial Street Holdings | Gifore Agricultural vs. Peoples Insurance of |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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