Correlation Between Gifore Agricultural and Masterwork Machinery
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By analyzing existing cross correlation between Gifore Agricultural Machinery and Masterwork Machinery, you can compare the effects of market volatilities on Gifore Agricultural and Masterwork Machinery 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 Masterwork Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gifore Agricultural and Masterwork Machinery.
Diversification Opportunities for Gifore Agricultural and Masterwork Machinery
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gifore and Masterwork is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Gifore Agricultural Machinery and Masterwork Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masterwork Machinery 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 Masterwork Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masterwork Machinery has no effect on the direction of Gifore Agricultural i.e., Gifore Agricultural and Masterwork Machinery go up and down completely randomly.
Pair Corralation between Gifore Agricultural and Masterwork Machinery
Assuming the 90 days trading horizon Gifore Agricultural Machinery is expected to generate 0.85 times more return on investment than Masterwork Machinery. However, Gifore Agricultural Machinery is 1.18 times less risky than Masterwork Machinery. It trades about 0.07 of its potential returns per unit of risk. Masterwork Machinery is currently generating about 0.04 per unit of risk. If you would invest 452.00 in Gifore Agricultural Machinery on October 24, 2024 and sell it today you would earn a total of 60.00 from holding Gifore Agricultural Machinery or generate 13.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Gifore Agricultural Machinery vs. Masterwork Machinery
Performance |
Timeline |
Gifore Agricultural |
Masterwork Machinery |
Gifore Agricultural and Masterwork Machinery Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gifore Agricultural and Masterwork Machinery
The main advantage of trading using opposite Gifore Agricultural and Masterwork Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gifore Agricultural position performs unexpectedly, Masterwork Machinery 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 Masterwork Machinery will offset losses from the drop in Masterwork Machinery's long position.Gifore Agricultural vs. Ningbo Construction Co | Gifore Agricultural vs. Huasi Agricultural Development | Gifore Agricultural vs. Nanxing Furniture Machinery | Gifore Agricultural vs. Beijing Seeyon Internet |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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