Correlation Between Aluminum Corp and Gifore Agricultural
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By analyzing existing cross correlation between Aluminum Corp of and Gifore Agricultural Machinery, you can compare the effects of market volatilities on Aluminum Corp 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 Aluminum Corp with a short position of Gifore Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Gifore Agricultural.
Diversification Opportunities for Aluminum Corp and Gifore Agricultural
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aluminum and Gifore is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of and Gifore Agricultural Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gifore Agricultural and Aluminum 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 Aluminum Corp of 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 Aluminum Corp i.e., Aluminum Corp and Gifore Agricultural go up and down completely randomly.
Pair Corralation between Aluminum Corp and Gifore Agricultural
Assuming the 90 days trading horizon Aluminum Corp of is expected to generate 0.86 times more return on investment than Gifore Agricultural. However, Aluminum Corp of is 1.16 times less risky than Gifore Agricultural. It trades about 0.05 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 469.00 in Aluminum Corp of on September 3, 2024 and sell it today you would earn a total of 283.00 from holding Aluminum Corp of or generate 60.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Gifore Agricultural Machinery
Performance |
| Timeline |
| Aluminum Corp |
| Gifore Agricultural |
Aluminum Corp and Gifore Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Gifore Agricultural
The main advantage of trading using opposite Aluminum Corp and Gifore Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp 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.| Aluminum Corp vs. ROPEOK Technology Group | Aluminum Corp vs. Kingsignal Technology Co | Aluminum Corp vs. Northking Information Technology | Aluminum Corp vs. Henan Shuanghui Investment |
| Gifore Agricultural vs. Xiwang Foodstuffs Co | Gifore Agricultural vs. Tianshan Aluminum Group | Gifore Agricultural vs. Zhejiang Yayi Metal | Gifore Agricultural vs. Suzhou Weizhixiang Food |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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