Correlation Between Caihong Display and Gifore Agricultural
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By analyzing existing cross correlation between Caihong Display Devices and Gifore Agricultural Machinery, you can compare the effects of market volatilities on Caihong Display 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 Caihong Display with a short position of Gifore Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caihong Display and Gifore Agricultural.
Diversification Opportunities for Caihong Display and Gifore Agricultural
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Caihong and Gifore is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Caihong Display Devices and Gifore Agricultural Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gifore Agricultural and Caihong Display 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 Caihong Display Devices 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 Caihong Display i.e., Caihong Display and Gifore Agricultural go up and down completely randomly.
Pair Corralation between Caihong Display and Gifore Agricultural
Assuming the 90 days trading horizon Caihong Display Devices is expected to generate 0.94 times more return on investment than Gifore Agricultural. However, Caihong Display Devices is 1.07 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 0.01 per unit of risk. If you would invest 458.00 in Caihong Display Devices on October 27, 2024 and sell it today you would earn a total of 424.00 from holding Caihong Display Devices or generate 92.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caihong Display Devices vs. Gifore Agricultural Machinery
Performance |
| Timeline |
| Caihong Display Devices |
| Gifore Agricultural |
Caihong Display and Gifore Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caihong Display and Gifore Agricultural
The main advantage of trading using opposite Caihong Display and Gifore Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caihong Display 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.| Caihong Display vs. Chengdu Kanghua Biological | Caihong Display vs. Suzhou Novoprotein Scientific | Caihong Display vs. Aluminum Corp of | Caihong Display vs. COL Digital Publishing |
| Gifore Agricultural vs. Agricultural Bank of | Gifore Agricultural vs. Industrial and Commercial | Gifore Agricultural vs. Bank of China | Gifore Agricultural vs. China Construction Bank |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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