Correlation Between Invengo Information and Gansu Jiu
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By analyzing existing cross correlation between Invengo Information Technology and Gansu Jiu Steel, you can compare the effects of market volatilities on Invengo Information 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 Invengo Information with a short position of Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invengo Information and Gansu Jiu.
Diversification Opportunities for Invengo Information and Gansu Jiu
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Invengo and Gansu is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Invengo Information Technology 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 Invengo Information 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 Invengo Information Technology 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 Invengo Information i.e., Invengo Information and Gansu Jiu go up and down completely randomly.
Pair Corralation between Invengo Information and Gansu Jiu
Assuming the 90 days trading horizon Invengo Information Technology is expected to generate 1.56 times more return on investment than Gansu Jiu. However, Invengo Information is 1.56 times more volatile than Gansu Jiu Steel. It trades about 0.04 of its potential returns per unit of risk. Gansu Jiu Steel is currently generating about 0.02 per unit of risk. If you would invest 463.00 in Invengo Information Technology on September 12, 2024 and sell it today you would earn a total of 173.00 from holding Invengo Information Technology or generate 37.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invengo Information Technology vs. Gansu Jiu Steel
Performance |
| Timeline |
| Invengo Information |
| Gansu Jiu Steel |
Invengo Information and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invengo Information and Gansu Jiu
The main advantage of trading using opposite Invengo Information and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invengo Information 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.| Invengo Information vs. Gansu Jiu Steel | Invengo Information vs. Shandong Mining Machinery | Invengo Information vs. Aba Chemicals Corp | Invengo Information vs. BlueFocus Communication Group |
| Gansu Jiu vs. Zijin Mining Group | Gansu Jiu vs. Wanhua Chemical Group | Gansu Jiu vs. Baoshan Iron Steel | Gansu Jiu vs. Rongsheng Petrochemical Co |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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