Correlation Between 37 Interactive and Gansu Jiu
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By analyzing existing cross correlation between 37 Interactive Entertainment and Gansu Jiu Steel, you can compare the effects of market volatilities on 37 Interactive 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 37 Interactive with a short position of Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of 37 Interactive and Gansu Jiu.
Diversification Opportunities for 37 Interactive and Gansu Jiu
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 002555 and Gansu is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding 37 Interactive Entertainment 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 37 Interactive 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 37 Interactive Entertainment 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 37 Interactive i.e., 37 Interactive and Gansu Jiu go up and down completely randomly.
Pair Corralation between 37 Interactive and Gansu Jiu
Assuming the 90 days trading horizon 37 Interactive Entertainment is expected to under-perform the Gansu Jiu. In addition to that, 37 Interactive is 1.29 times more volatile than Gansu Jiu Steel. It trades about -0.03 of its total potential returns per unit of risk. Gansu Jiu Steel is currently generating about 0.04 per unit of volatility. If you would invest 152.00 in Gansu Jiu Steel on September 12, 2024 and sell it today you would earn a total of 33.00 from holding Gansu Jiu Steel or generate 21.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
37 Interactive Entertainment vs. Gansu Jiu Steel
Performance |
| Timeline |
| 37 Interactive Enter |
| Gansu Jiu Steel |
37 Interactive and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 37 Interactive and Gansu Jiu
The main advantage of trading using opposite 37 Interactive and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 37 Interactive 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.| 37 Interactive vs. Kweichow Moutai Co | 37 Interactive vs. Shenzhen Mindray Bio Medical | 37 Interactive vs. G bits Network Technology | 37 Interactive vs. Beijing Roborock Technology |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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