Correlation Between Gansu Huangtai and North Huajin
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and North Huajin Chemical, you can compare the effects of market volatilities on Gansu Huangtai and North Huajin 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 Gansu Huangtai with a short position of North Huajin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and North Huajin.
Diversification Opportunities for Gansu Huangtai and North Huajin
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gansu and North is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and North Huajin Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Huajin Chemical and Gansu Huangtai 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 Gansu Huangtai Wine marketing are associated (or correlated) with North Huajin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Huajin Chemical has no effect on the direction of Gansu Huangtai i.e., Gansu Huangtai and North Huajin go up and down completely randomly.
Pair Corralation between Gansu Huangtai and North Huajin
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 3.13 times more return on investment than North Huajin. However, Gansu Huangtai is 3.13 times more volatile than North Huajin Chemical. It trades about -0.01 of its potential returns per unit of risk. North Huajin Chemical is currently generating about -0.26 per unit of risk. If you would invest 1,739 in Gansu Huangtai Wine marketing on October 18, 2024 and sell it today you would lose (68.00) from holding Gansu Huangtai Wine marketing or give up 3.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. North Huajin Chemical
Performance |
| Timeline |
| Gansu Huangtai Wine |
| North Huajin Chemical |
Gansu Huangtai and North Huajin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and North Huajin
The main advantage of trading using opposite Gansu Huangtai and North Huajin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai position performs unexpectedly, North Huajin 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 North Huajin will offset losses from the drop in North Huajin's long position.| Gansu Huangtai vs. Runjian Communication Co | Gansu Huangtai vs. Dongfeng Automobile Co | Gansu Huangtai vs. Suzhou Mingzhi Technology | Gansu Huangtai vs. Songz Automobile Air |
| North Huajin vs. Zijin Mining Group | North Huajin vs. Wanhua Chemical Group | North Huajin vs. Baoshan Iron Steel | North Huajin 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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