Correlation Between TianJin 712 and Gifore Agricultural
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By analyzing existing cross correlation between TianJin 712 Communication and Gifore Agricultural Machinery, you can compare the effects of market volatilities on TianJin 712 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 TianJin 712 with a short position of Gifore Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of TianJin 712 and Gifore Agricultural.
Diversification Opportunities for TianJin 712 and Gifore Agricultural
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TianJin and Gifore is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding TianJin 712 Communication and Gifore Agricultural Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gifore Agricultural and TianJin 712 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 TianJin 712 Communication 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 TianJin 712 i.e., TianJin 712 and Gifore Agricultural go up and down completely randomly.
Pair Corralation between TianJin 712 and Gifore Agricultural
Assuming the 90 days trading horizon TianJin 712 Communication is expected to under-perform the Gifore Agricultural. But the stock apears to be less risky and, when comparing its historical volatility, TianJin 712 Communication is 1.18 times less risky than Gifore Agricultural. The stock trades about -0.34 of its potential returns per unit of risk. The Gifore Agricultural Machinery is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 552.00 in Gifore Agricultural Machinery on October 12, 2024 and sell it today you would lose (90.00) from holding Gifore Agricultural Machinery or give up 16.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TianJin 712 Communication vs. Gifore Agricultural Machinery
Performance |
| Timeline |
| TianJin 712 Communication |
| Gifore Agricultural |
TianJin 712 and Gifore Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TianJin 712 and Gifore Agricultural
The main advantage of trading using opposite TianJin 712 and Gifore Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TianJin 712 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.| TianJin 712 vs. Kweichow Moutai Co | TianJin 712 vs. NAURA Technology Group | TianJin 712 vs. Zhejiang Orient Gene | TianJin 712 vs. APT Medical |
| Gifore Agricultural vs. BTG Hotels Group | Gifore Agricultural vs. Cultural Investment Holdings | Gifore Agricultural vs. Kunwu Jiuding Investment | Gifore Agricultural vs. Shanghai Yanpu Metal |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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