Correlation Between Gifore Agricultural and Kuang Chi
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By analyzing existing cross correlation between Gifore Agricultural Machinery and Kuang Chi Technologies, you can compare the effects of market volatilities on Gifore Agricultural and Kuang Chi 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 Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gifore Agricultural and Kuang Chi.
Diversification Opportunities for Gifore Agricultural and Kuang Chi
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gifore and Kuang is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Gifore Agricultural Machinery and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies 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 Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Gifore Agricultural i.e., Gifore Agricultural and Kuang Chi go up and down completely randomly.
Pair Corralation between Gifore Agricultural and Kuang Chi
Assuming the 90 days trading horizon Gifore Agricultural Machinery is expected to under-perform the Kuang Chi. In addition to that, Gifore Agricultural is 1.1 times more volatile than Kuang Chi Technologies. It trades about -0.19 of its total potential returns per unit of risk. Kuang Chi Technologies is currently generating about 0.01 per unit of volatility. If you would invest 4,143 in Kuang Chi Technologies on October 12, 2024 and sell it today you would lose (20.00) from holding Kuang Chi Technologies or give up 0.48% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Gifore Agricultural Machinery vs. Kuang Chi Technologies
Performance |
Timeline |
Gifore Agricultural |
Kuang Chi Technologies |
Gifore Agricultural and Kuang Chi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gifore Agricultural and Kuang Chi
The main advantage of trading using opposite Gifore Agricultural and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gifore Agricultural position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi's long position.Gifore Agricultural vs. Kuang Chi Technologies | Gifore Agricultural vs. Dawning Information Industry | Gifore Agricultural vs. Sinofibers Technology Co | Gifore Agricultural vs. Sharetronic Data Technology |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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