Correlation Between Financial Street and Gem Year
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By analyzing existing cross correlation between Financial Street Holdings and Gem Year Industrial Co, you can compare the effects of market volatilities on Financial Street and Gem Year 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 Financial Street with a short position of Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financial Street and Gem Year.
Diversification Opportunities for Financial Street and Gem Year
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Financial and Gem is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Financial Street Holdings and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial and Financial Street 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 Financial Street Holdings are associated (or correlated) with Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Financial Street i.e., Financial Street and Gem Year go up and down completely randomly.
Pair Corralation between Financial Street and Gem Year
Assuming the 90 days trading horizon Financial Street Holdings is expected to under-perform the Gem Year. In addition to that, Financial Street is 1.23 times more volatile than Gem Year Industrial Co. It trades about -0.02 of its total potential returns per unit of risk. Gem Year Industrial Co is currently generating about 0.0 per unit of volatility. If you would invest 482.00 in Gem Year Industrial Co on October 16, 2024 and sell it today you would lose (42.00) from holding Gem Year Industrial Co or give up 8.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Financial Street Holdings vs. Gem Year Industrial Co
Performance |
| Timeline |
| Financial Street Holdings |
| Gem Year Industrial |
Financial Street and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Financial Street and Gem Year
The main advantage of trading using opposite Financial Street and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financial Street position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year's long position.| Financial Street vs. Hubei Geoway Investment | Financial Street vs. Zhongzhu Medical Holdings | Financial Street vs. Nuode Investment Co | Financial Street vs. Medprin Regenerative Medical |
| Gem Year vs. Unisplendour Corp | Gem Year vs. Financial Street Holdings | Gem Year vs. Tongyu Communication | Gem Year vs. Ningbo Tech Bank Co |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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