Correlation Between Tongding Interconnection and Gifore Agricultural
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By analyzing existing cross correlation between Tongding Interconnection Information and Gifore Agricultural Machinery, you can compare the effects of market volatilities on Tongding Interconnection 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 Tongding Interconnection with a short position of Gifore Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongding Interconnection and Gifore Agricultural.
Diversification Opportunities for Tongding Interconnection and Gifore Agricultural
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tongding and Gifore is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Tongding Interconnection Infor and Gifore Agricultural Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gifore Agricultural and Tongding Interconnection 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 Tongding Interconnection Information 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 Tongding Interconnection i.e., Tongding Interconnection and Gifore Agricultural go up and down completely randomly.
Pair Corralation between Tongding Interconnection and Gifore Agricultural
Assuming the 90 days trading horizon Tongding Interconnection Information is expected to generate 0.78 times more return on investment than Gifore Agricultural. However, Tongding Interconnection Information is 1.29 times less risky than Gifore Agricultural. It trades about 0.27 of its potential returns per unit of risk. Gifore Agricultural Machinery is currently generating about 0.19 per unit of risk. If you would invest 322.00 in Tongding Interconnection Information on September 12, 2024 and sell it today you would earn a total of 171.00 from holding Tongding Interconnection Information or generate 53.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.28% |
Values | Daily Returns |
Tongding Interconnection Infor vs. Gifore Agricultural Machinery
Performance |
Timeline |
Tongding Interconnection |
Gifore Agricultural |
Tongding Interconnection and Gifore Agricultural Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tongding Interconnection and Gifore Agricultural
The main advantage of trading using opposite Tongding Interconnection and Gifore Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongding Interconnection 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.Tongding Interconnection vs. Industrial and Commercial | Tongding Interconnection vs. China Construction Bank | Tongding Interconnection vs. Bank of China | Tongding Interconnection vs. Agricultural Bank of |
Gifore Agricultural vs. China Petroleum Chemical | Gifore Agricultural vs. PetroChina Co Ltd | Gifore Agricultural vs. China State Construction | Gifore Agricultural vs. China Railway Group |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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