Correlation Between Shenzhen MYS and Gansu Jiu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen MYS Environmental and Gansu Jiu Steel, you can compare the effects of market volatilities on Shenzhen MYS 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 Shenzhen MYS with a short position of Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Gansu Jiu.
Diversification Opportunities for Shenzhen MYS and Gansu Jiu
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Gansu is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental 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 Shenzhen MYS 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 Shenzhen MYS Environmental 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 Shenzhen MYS i.e., Shenzhen MYS and Gansu Jiu go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Gansu Jiu
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to generate 1.18 times more return on investment than Gansu Jiu. However, Shenzhen MYS is 1.18 times more volatile than Gansu Jiu Steel. It trades about 0.05 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 288.00 in Shenzhen MYS Environmental on August 26, 2024 and sell it today you would earn a total of 87.00 from holding Shenzhen MYS Environmental or generate 30.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. Gansu Jiu Steel
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Gansu Jiu Steel |
Shenzhen MYS and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Gansu Jiu
The main advantage of trading using opposite Shenzhen MYS and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS 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.| Shenzhen MYS vs. PKU HealthCare Corp | Shenzhen MYS vs. Eastroc Beverage Group | Shenzhen MYS vs. Youngy Health Co | Shenzhen MYS vs. Tongxing Environmental Protection |
| Gansu Jiu vs. Wanhua Chemical Group | Gansu Jiu vs. Shandong Gold Mining | Gansu Jiu vs. Rongsheng Petrochemical Co | Gansu Jiu vs. Inner Mongolia BaoTou |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |