Correlation Between Guangxi Guitang and Baoshan Iron
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangxi Guitang Group and Baoshan Iron Steel, you can compare the effects of market volatilities on Guangxi Guitang and Baoshan Iron 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 Guangxi Guitang with a short position of Baoshan Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Guitang and Baoshan Iron.
Diversification Opportunities for Guangxi Guitang and Baoshan Iron
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangxi and Baoshan is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Guitang Group and Baoshan Iron Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baoshan Iron Steel and Guangxi Guitang 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 Guangxi Guitang Group are associated (or correlated) with Baoshan Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baoshan Iron Steel has no effect on the direction of Guangxi Guitang i.e., Guangxi Guitang and Baoshan Iron go up and down completely randomly.
Pair Corralation between Guangxi Guitang and Baoshan Iron
Assuming the 90 days trading horizon Guangxi Guitang Group is expected to generate 4.27 times more return on investment than Baoshan Iron. However, Guangxi Guitang is 4.27 times more volatile than Baoshan Iron Steel. It trades about 0.84 of its potential returns per unit of risk. Baoshan Iron Steel is currently generating about 0.05 per unit of risk. If you would invest 582.00 in Guangxi Guitang Group on September 4, 2024 and sell it today you would earn a total of 1,188 from holding Guangxi Guitang Group or generate 204.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Guitang Group vs. Baoshan Iron Steel
Performance |
| Timeline |
| Guangxi Guitang Group |
| Baoshan Iron Steel |
Guangxi Guitang and Baoshan Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Guitang and Baoshan Iron
The main advantage of trading using opposite Guangxi Guitang and Baoshan Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Guitang position performs unexpectedly, Baoshan Iron 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 Baoshan Iron will offset losses from the drop in Baoshan Iron's long position.| Guangxi Guitang vs. Zijin Mining Group | Guangxi Guitang vs. Wanhua Chemical Group | Guangxi Guitang vs. Baoshan Iron Steel | Guangxi Guitang vs. Shandong Gold Mining |
| Baoshan Iron vs. Zijin Mining Group | Baoshan Iron vs. Wanhua Chemical Group | Baoshan Iron vs. Rongsheng Petrochemical Co | Baoshan Iron vs. Shandong Gold Mining |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |