Correlation Between Shanghai Yaoji and Gansu Jiu
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By analyzing existing cross correlation between Shanghai Yaoji Playing and Gansu Jiu Steel, you can compare the effects of market volatilities on Shanghai Yaoji 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 Shanghai Yaoji with a short position of Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and Gansu Jiu.
Diversification Opportunities for Shanghai Yaoji and Gansu Jiu
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Gansu is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing 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 Shanghai Yaoji 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 Shanghai Yaoji Playing 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 Shanghai Yaoji i.e., Shanghai Yaoji and Gansu Jiu go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and Gansu Jiu
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to generate 1.58 times more return on investment than Gansu Jiu. However, Shanghai Yaoji is 1.58 times more volatile than Gansu Jiu Steel. It trades about 0.03 of its potential returns per unit of risk. Gansu Jiu Steel is currently generating about 0.0 per unit of risk. If you would invest 2,231 in Shanghai Yaoji Playing on October 25, 2024 and sell it today you would earn a total of 409.00 from holding Shanghai Yaoji Playing or generate 18.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yaoji Playing vs. Gansu Jiu Steel
Performance |
| Timeline |
| Shanghai Yaoji Playing |
| Gansu Jiu Steel |
Shanghai Yaoji and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yaoji and Gansu Jiu
The main advantage of trading using opposite Shanghai Yaoji and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji 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.| Shanghai Yaoji vs. PetroChina Co Ltd | Shanghai Yaoji vs. Gansu Jiu Steel | Shanghai Yaoji vs. Ming Yang Smart | Shanghai Yaoji vs. Aba Chemicals Corp |
| Gansu Jiu vs. Dynagreen Environmental Protection | Gansu Jiu vs. Universal Scientific Industrial | Gansu Jiu vs. Anyang Iron Steel | Gansu Jiu vs. Tongxing Environmental Protection |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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