Correlation Between Shenyang Huitian and Gansu Jiu
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By analyzing existing cross correlation between Shenyang Huitian Thermal and Gansu Jiu Steel, you can compare the effects of market volatilities on Shenyang Huitian and Gansu Jiu 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 Shenyang Huitian with a short position of Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Huitian and Gansu Jiu.
Diversification Opportunities for Shenyang Huitian and Gansu Jiu
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenyang and Gansu is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Huitian Thermal and Gansu Jiu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Jiu Steel and Shenyang Huitian 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 Shenyang Huitian Thermal are associated (or correlated) with Gansu Jiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Jiu Steel has no effect on the direction of Shenyang Huitian i.e., Shenyang Huitian and Gansu Jiu go up and down completely randomly.
Pair Corralation between Shenyang Huitian and Gansu Jiu
Assuming the 90 days trading horizon Shenyang Huitian Thermal is expected to generate 1.63 times more return on investment than Gansu Jiu. However, Shenyang Huitian is 1.63 times more volatile than Gansu Jiu Steel. It trades about -0.04 of its potential returns per unit of risk. Gansu Jiu Steel is currently generating about -0.11 per unit of risk. If you would invest 369.00 in Shenyang Huitian Thermal on October 25, 2024 and sell it today you would lose (29.00) from holding Shenyang Huitian Thermal or give up 7.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Huitian Thermal vs. Gansu Jiu Steel
Performance |
| Timeline |
| Shenyang Huitian Thermal |
| Gansu Jiu Steel |
Shenyang Huitian and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Huitian and Gansu Jiu
The main advantage of trading using opposite Shenyang Huitian and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Huitian position performs unexpectedly, Gansu Jiu 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 Gansu Jiu will offset losses from the drop in Gansu Jiu's long position.| Shenyang Huitian vs. Gansu Jiu Steel | Shenyang Huitian vs. Ming Yang Smart | Shenyang Huitian vs. Aba Chemicals Corp | Shenyang Huitian vs. Loctek Ergonomic Technology |
| Gansu Jiu vs. Dynagreen Environmental Protection | Gansu Jiu vs. Universal Scientific Industrial | Gansu Jiu vs. Anyang Iron Steel | Gansu Jiu vs. Tongxing Environmental Protection |
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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