Correlation Between China Railway and Gifore Agricultural
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By analyzing existing cross correlation between China Railway Construction and Gifore Agricultural Machinery, you can compare the effects of market volatilities on China Railway 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 China Railway with a short position of Gifore Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Gifore Agricultural.
Diversification Opportunities for China Railway and Gifore Agricultural
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Gifore is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Construction and Gifore Agricultural Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gifore Agricultural and China Railway 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 China Railway Construction 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 China Railway i.e., China Railway and Gifore Agricultural go up and down completely randomly.
Pair Corralation between China Railway and Gifore Agricultural
Assuming the 90 days trading horizon China Railway Construction is expected to generate 0.33 times more return on investment than Gifore Agricultural. However, China Railway Construction is 3.07 times less risky than Gifore Agricultural. It trades about -0.28 of its potential returns per unit of risk. Gifore Agricultural Machinery is currently generating about -0.14 per unit of risk. If you would invest 464.00 in China Railway Construction on October 17, 2024 and sell it today you would lose (43.00) from holding China Railway Construction or give up 9.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Construction vs. Gifore Agricultural Machinery
Performance |
| Timeline |
| China Railway Constr |
| Gifore Agricultural |
China Railway and Gifore Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Gifore Agricultural
The main advantage of trading using opposite China Railway and Gifore Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway 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.| China Railway vs. Unisplendour Corp | China Railway vs. Jiangsu Financial Leasing | China Railway vs. Eastern Air Logistics | China Railway vs. Panda Financial Holding |
| Gifore Agricultural vs. Zhongshan Public Utilities | Gifore Agricultural vs. Zhengzhou Coal Mining | Gifore Agricultural vs. Financial Street Holdings | Gifore Agricultural 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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