Correlation Between Gifore Agricultural and Dymatic Chemicals
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By analyzing existing cross correlation between Gifore Agricultural Machinery and Dymatic Chemicals, you can compare the effects of market volatilities on Gifore Agricultural and Dymatic Chemicals 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 Gifore Agricultural with a short position of Dymatic Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gifore Agricultural and Dymatic Chemicals.
Diversification Opportunities for Gifore Agricultural and Dymatic Chemicals
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gifore and Dymatic is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Gifore Agricultural Machinery and Dymatic Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dymatic Chemicals and Gifore Agricultural 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 Gifore Agricultural Machinery are associated (or correlated) with Dymatic Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dymatic Chemicals has no effect on the direction of Gifore Agricultural i.e., Gifore Agricultural and Dymatic Chemicals go up and down completely randomly.
Pair Corralation between Gifore Agricultural and Dymatic Chemicals
Assuming the 90 days trading horizon Gifore Agricultural Machinery is expected to generate 1.34 times more return on investment than Dymatic Chemicals. However, Gifore Agricultural is 1.34 times more volatile than Dymatic Chemicals. It trades about 0.1 of its potential returns per unit of risk. Dymatic Chemicals is currently generating about -0.11 per unit of risk. If you would invest 501.00 in Gifore Agricultural Machinery on October 3, 2024 and sell it today you would earn a total of 36.00 from holding Gifore Agricultural Machinery or generate 7.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Gifore Agricultural Machinery vs. Dymatic Chemicals
Performance |
Timeline |
Gifore Agricultural |
Dymatic Chemicals |
Gifore Agricultural and Dymatic Chemicals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gifore Agricultural and Dymatic Chemicals
The main advantage of trading using opposite Gifore Agricultural and Dymatic Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gifore Agricultural position performs unexpectedly, Dymatic Chemicals 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 Dymatic Chemicals will offset losses from the drop in Dymatic Chemicals' long position.Gifore Agricultural vs. Chengdu Kanghua Biological | Gifore Agricultural vs. Beijing Wantai Biological | Gifore Agricultural vs. Suzhou Novoprotein Scientific | Gifore Agricultural vs. Aluminum Corp of |
Dymatic Chemicals vs. Zijin Mining Group | Dymatic Chemicals vs. Wanhua Chemical Group | Dymatic Chemicals vs. Baoshan Iron Steel | Dymatic Chemicals vs. Shandong Gold Mining |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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