Correlation Between Gansu Huangtai and Shanghai Jin
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Shanghai Jin Jiang, you can compare the effects of market volatilities on Gansu Huangtai and Shanghai Jin 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 Shanghai Jin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Shanghai Jin.
Diversification Opportunities for Gansu Huangtai and Shanghai Jin
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Shanghai is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and Shanghai Jin Jiang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jin Jiang 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 Shanghai Jin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jin Jiang has no effect on the direction of Gansu Huangtai i.e., Gansu Huangtai and Shanghai Jin go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Shanghai Jin
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 1.93 times more return on investment than Shanghai Jin. However, Gansu Huangtai is 1.93 times more volatile than Shanghai Jin Jiang. It trades about 0.02 of its potential returns per unit of risk. Shanghai Jin Jiang is currently generating about 0.0 per unit of risk. If you would invest 1,601 in Gansu Huangtai Wine marketing on September 26, 2024 and sell it today you would earn a total of 73.00 from holding Gansu Huangtai Wine marketing or generate 4.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.66% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Shanghai Jin Jiang
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Shanghai Jin Jiang |
Gansu Huangtai and Shanghai Jin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Shanghai Jin
The main advantage of trading using opposite Gansu Huangtai and Shanghai Jin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai position performs unexpectedly, Shanghai Jin 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 Shanghai Jin will offset losses from the drop in Shanghai Jin's long position.| Gansu Huangtai vs. PetroChina Co Ltd | Gansu Huangtai vs. China Mobile Limited | Gansu Huangtai vs. CNOOC Limited | Gansu Huangtai vs. Ping An Insurance |
| Shanghai Jin vs. Bank of China | Shanghai Jin vs. Kweichow Moutai Co | Shanghai Jin vs. PetroChina Co Ltd | Shanghai Jin vs. Bank of Communications |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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