Correlation Between Sinosteel Engineering and Changjiang Jinggong
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By analyzing existing cross correlation between Sinosteel Engineering and and Changjiang Jinggong Steel, you can compare the effects of market volatilities on Sinosteel Engineering and Changjiang Jinggong 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 Changjiang Jinggong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Engineering and Changjiang Jinggong.
Diversification Opportunities for Sinosteel Engineering and Changjiang Jinggong
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinosteel and Changjiang is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Engineering and and Changjiang Jinggong Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Jinggong 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 Changjiang Jinggong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Jinggong Steel has no effect on the direction of Sinosteel Engineering i.e., Sinosteel Engineering and Changjiang Jinggong go up and down completely randomly.
Pair Corralation between Sinosteel Engineering and Changjiang Jinggong
Assuming the 90 days trading horizon Sinosteel Engineering and is expected to generate 1.77 times more return on investment than Changjiang Jinggong. However, Sinosteel Engineering is 1.77 times more volatile than Changjiang Jinggong Steel. It trades about 0.03 of its potential returns per unit of risk. Changjiang Jinggong Steel is currently generating about -0.03 per unit of risk. If you would invest 585.00 in Sinosteel Engineering and on August 30, 2024 and sell it today you would earn a total of 103.00 from holding Sinosteel Engineering and or generate 17.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinosteel Engineering and vs. Changjiang Jinggong Steel
Performance |
| Timeline |
| Sinosteel Engineering and |
| Changjiang Jinggong Steel |
Sinosteel Engineering and Changjiang Jinggong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinosteel Engineering and Changjiang Jinggong
The main advantage of trading using opposite Sinosteel Engineering and Changjiang Jinggong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Engineering position performs unexpectedly, Changjiang Jinggong 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 Changjiang Jinggong will offset losses from the drop in Changjiang Jinggong's long position.| Sinosteel Engineering vs. PetroChina Co Ltd | Sinosteel Engineering vs. China State Construction | Sinosteel Engineering vs. China Mobile Limited | Sinosteel Engineering vs. Industrial and Commercial |
| Changjiang Jinggong vs. Lander Sports Development | Changjiang Jinggong vs. Shanghai CEO Environmental | Changjiang Jinggong vs. Cicc Fund Management | Changjiang Jinggong vs. Chengdu B ray Media |
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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