Correlation Between Suzhou Weizhixiang and Gifore Agricultural
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By analyzing existing cross correlation between Suzhou Weizhixiang Food and Gifore Agricultural Machinery, you can compare the effects of market volatilities on Suzhou Weizhixiang 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 Suzhou Weizhixiang with a short position of Gifore Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and Gifore Agricultural.
Diversification Opportunities for Suzhou Weizhixiang and Gifore Agricultural
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Suzhou and Gifore is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food and Gifore Agricultural Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gifore Agricultural and Suzhou Weizhixiang 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 Suzhou Weizhixiang Food 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 Suzhou Weizhixiang i.e., Suzhou Weizhixiang and Gifore Agricultural go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and Gifore Agricultural
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to under-perform the Gifore Agricultural. But the stock apears to be less risky and, when comparing its historical volatility, Suzhou Weizhixiang Food is 1.05 times less risky than Gifore Agricultural. The stock trades about -0.04 of its potential returns per unit of risk. The Gifore Agricultural Machinery is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 507.00 in Gifore Agricultural Machinery on September 3, 2024 and sell it today you would lose (13.00) from holding Gifore Agricultural Machinery or give up 2.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Weizhixiang Food vs. Gifore Agricultural Machinery
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| Gifore Agricultural |
Suzhou Weizhixiang and Gifore Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and Gifore Agricultural
The main advantage of trading using opposite Suzhou Weizhixiang and Gifore Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang 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.| Suzhou Weizhixiang vs. Beijing Wantai Biological | Suzhou Weizhixiang vs. Aluminum Corp of | Suzhou Weizhixiang vs. COL Digital Publishing | Suzhou Weizhixiang vs. Shaanxi Meineng Clean |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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