Correlation Between Sinosteel Engineering and Gansu Jiu
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By analyzing existing cross correlation between Sinosteel Engineering and and Gansu Jiu Steel, you can compare the effects of market volatilities on Sinosteel Engineering 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 Sinosteel Engineering with a short position of Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Engineering and Gansu Jiu.
Diversification Opportunities for Sinosteel Engineering and Gansu Jiu
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinosteel and Gansu is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Engineering and 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 Sinosteel Engineering 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 Sinosteel Engineering and 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 Sinosteel Engineering i.e., Sinosteel Engineering and Gansu Jiu go up and down completely randomly.
Pair Corralation between Sinosteel Engineering and Gansu Jiu
Assuming the 90 days trading horizon Sinosteel Engineering and is expected to generate 0.64 times more return on investment than Gansu Jiu. However, Sinosteel Engineering and is 1.56 times less risky than Gansu Jiu. It trades about 0.2 of its potential returns per unit of risk. Gansu Jiu Steel is currently generating about -0.24 per unit of risk. If you would invest 649.00 in Sinosteel Engineering and on September 1, 2024 and sell it today you would earn a total of 61.00 from holding Sinosteel Engineering and or generate 9.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Sinosteel Engineering and vs. Gansu Jiu Steel
Performance |
Timeline |
Sinosteel Engineering and |
Gansu Jiu Steel |
Sinosteel Engineering and Gansu Jiu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sinosteel Engineering and Gansu Jiu
The main advantage of trading using opposite Sinosteel Engineering and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Engineering 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.Sinosteel Engineering vs. Industrial Securities Co | Sinosteel Engineering vs. Western Metal Materials | Sinosteel Engineering vs. Shandong Huifa Foodstuff | Sinosteel Engineering vs. Sichuan Yahua Industrial |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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