Correlation Between GRG Banking and Gansu Jiu
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By analyzing existing cross correlation between GRG Banking Equipment and Gansu Jiu Steel, you can compare the effects of market volatilities on GRG Banking 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 GRG Banking with a short position of Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Gansu Jiu.
Diversification Opportunities for GRG Banking and Gansu Jiu
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GRG and Gansu is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment 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 GRG Banking 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 GRG Banking Equipment 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 GRG Banking i.e., GRG Banking and Gansu Jiu go up and down completely randomly.
Pair Corralation between GRG Banking and Gansu Jiu
Assuming the 90 days trading horizon GRG Banking Equipment is expected to generate 0.85 times more return on investment than Gansu Jiu. However, GRG Banking Equipment is 1.18 times less risky than Gansu Jiu. It trades about -0.5 of its potential returns per unit of risk. Gansu Jiu Steel is currently generating about -0.44 per unit of risk. If you would invest 1,310 in GRG Banking Equipment on October 11, 2024 and sell it today you would lose (235.00) from holding GRG Banking Equipment or give up 17.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRG Banking Equipment vs. Gansu Jiu Steel
Performance |
| Timeline |
| GRG Banking Equipment |
| Gansu Jiu Steel |
GRG Banking and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and Gansu Jiu
The main advantage of trading using opposite GRG Banking and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking 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.| GRG Banking vs. Jiangsu Yueda Investment | GRG Banking vs. Shenzhen Clou Electronics | GRG Banking vs. Hangzhou Arcvideo Technology | GRG Banking vs. Beijing YanDong MicroElectronic |
| Gansu Jiu vs. Songz Automobile Air | Gansu Jiu vs. GRG Banking Equipment | Gansu Jiu vs. HeNan Splendor Science | Gansu Jiu vs. China Everbright Bank |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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