Correlation Between Sinosteel Engineering and Kunshan Guoli
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By analyzing existing cross correlation between Sinosteel Engineering and and Kunshan Guoli Electronic, you can compare the effects of market volatilities on Sinosteel Engineering and Kunshan Guoli 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 Kunshan Guoli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Engineering and Kunshan Guoli.
Diversification Opportunities for Sinosteel Engineering and Kunshan Guoli
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinosteel and Kunshan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Engineering and and Kunshan Guoli Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunshan Guoli Electronic 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 Kunshan Guoli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunshan Guoli Electronic has no effect on the direction of Sinosteel Engineering i.e., Sinosteel Engineering and Kunshan Guoli go up and down completely randomly.
Pair Corralation between Sinosteel Engineering and Kunshan Guoli
Assuming the 90 days trading horizon Sinosteel Engineering and is expected to generate 0.55 times more return on investment than Kunshan Guoli. However, Sinosteel Engineering and is 1.81 times less risky than Kunshan Guoli. It trades about 0.18 of its potential returns per unit of risk. Kunshan Guoli Electronic is currently generating about -0.02 per unit of risk. If you would invest 657.00 in Sinosteel Engineering and on September 4, 2024 and sell it today you would earn a total of 55.00 from holding Sinosteel Engineering and or generate 8.37% 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. Kunshan Guoli Electronic
Performance |
| Timeline |
| Sinosteel Engineering and |
| Kunshan Guoli Electronic |
Sinosteel Engineering and Kunshan Guoli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinosteel Engineering and Kunshan Guoli
The main advantage of trading using opposite Sinosteel Engineering and Kunshan Guoli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Engineering position performs unexpectedly, Kunshan Guoli 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 Kunshan Guoli will offset losses from the drop in Kunshan Guoli's long position.| Sinosteel Engineering vs. China Life Insurance | Sinosteel Engineering vs. Cinda Securities Co | Sinosteel Engineering vs. Piotech Inc A | Sinosteel Engineering vs. Dongxing Sec Co |
| Kunshan Guoli vs. Changchun UP Optotech | Kunshan Guoli vs. Lingyuan Iron Steel | Kunshan Guoli vs. GreenTech Environmental Co | Kunshan Guoli vs. Sinosteel Engineering and |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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