Correlation Between Allied Machinery and Gansu Huangtai
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By analyzing existing cross correlation between Allied Machinery Co and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Allied Machinery and Gansu Huangtai 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 Allied Machinery with a short position of Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allied Machinery and Gansu Huangtai.
Diversification Opportunities for Allied Machinery and Gansu Huangtai
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allied and Gansu is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Allied Machinery Co and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine and Allied Machinery 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 Allied Machinery Co are associated (or correlated) with Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Allied Machinery i.e., Allied Machinery and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Allied Machinery and Gansu Huangtai
Assuming the 90 days trading horizon Allied Machinery Co is expected to under-perform the Gansu Huangtai. But the stock apears to be less risky and, when comparing its historical volatility, Allied Machinery Co is 1.28 times less risky than Gansu Huangtai. The stock trades about -0.01 of its potential returns per unit of risk. The Gansu Huangtai Wine marketing is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,991 in Gansu Huangtai Wine marketing on October 16, 2024 and sell it today you would lose (292.00) from holding Gansu Huangtai Wine marketing or give up 14.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allied Machinery Co vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Allied Machinery |
| Gansu Huangtai Wine |
Allied Machinery and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allied Machinery and Gansu Huangtai
The main advantage of trading using opposite Allied Machinery and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allied Machinery position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Allied Machinery vs. Masterwork Machinery | Allied Machinery vs. Gifore Agricultural Machinery | Allied Machinery vs. Tianshui Huatian Technology | Allied Machinery vs. Zhejiang Yinlun Machinery |
| Gansu Huangtai vs. Hubei Forbon Technology | Gansu Huangtai vs. Hongrun Construction Group | Gansu Huangtai vs. Allied Machinery Co | Gansu Huangtai 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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