Correlation Between Allgens Medical and Gifore Agricultural
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By analyzing existing cross correlation between Allgens Medical Technology and Gifore Agricultural Machinery, you can compare the effects of market volatilities on Allgens Medical 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 Allgens Medical with a short position of Gifore Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allgens Medical and Gifore Agricultural.
Diversification Opportunities for Allgens Medical and Gifore Agricultural
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Allgens and Gifore is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Allgens Medical Technology and Gifore Agricultural Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gifore Agricultural and Allgens Medical 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 Allgens Medical Technology 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 Allgens Medical i.e., Allgens Medical and Gifore Agricultural go up and down completely randomly.
Pair Corralation between Allgens Medical and Gifore Agricultural
Assuming the 90 days trading horizon Allgens Medical Technology is expected to under-perform the Gifore Agricultural. But the stock apears to be less risky and, when comparing its historical volatility, Allgens Medical Technology is 1.21 times less risky than Gifore Agricultural. The stock trades about -0.1 of its potential returns per unit of risk. The Gifore Agricultural Machinery is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 495.00 in Gifore Agricultural Machinery on September 12, 2024 and sell it today you would earn a total of 23.00 from holding Gifore Agricultural Machinery or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allgens Medical Technology vs. Gifore Agricultural Machinery
Performance |
| Timeline |
| Allgens Medical Tech |
| Gifore Agricultural |
Allgens Medical and Gifore Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allgens Medical and Gifore Agricultural
The main advantage of trading using opposite Allgens Medical and Gifore Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allgens Medical 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.| Allgens Medical vs. Cultural Investment Holdings | Allgens Medical vs. Gome Telecom Equipment | Allgens Medical vs. Holitech Technology Co | Allgens Medical vs. Zotye Automobile Co |
| Gifore Agricultural vs. Impulse Qingdao Health | Gifore Agricultural vs. Guangzhou Dongfang Hotel | Gifore Agricultural vs. PKU HealthCare Corp | Gifore Agricultural vs. China World Trade |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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