Correlation Between Dongguan Chitwing and Gansu Jiu
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By analyzing existing cross correlation between Dongguan Chitwing Technology and Gansu Jiu Steel, you can compare the effects of market volatilities on Dongguan Chitwing 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 Dongguan Chitwing with a short position of Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Chitwing and Gansu Jiu.
Diversification Opportunities for Dongguan Chitwing and Gansu Jiu
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongguan and Gansu is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Chitwing 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 Dongguan Chitwing 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 Dongguan Chitwing 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 Dongguan Chitwing i.e., Dongguan Chitwing and Gansu Jiu go up and down completely randomly.
Pair Corralation between Dongguan Chitwing and Gansu Jiu
Assuming the 90 days trading horizon Dongguan Chitwing Technology is expected to generate 1.01 times more return on investment than Gansu Jiu. However, Dongguan Chitwing is 1.01 times more volatile than Gansu Jiu Steel. It trades about 0.1 of its potential returns per unit of risk. Gansu Jiu Steel is currently generating about -0.05 per unit of risk. If you would invest 2,337 in Dongguan Chitwing Technology on August 27, 2024 and sell it today you would earn a total of 189.00 from holding Dongguan Chitwing Technology or generate 8.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Chitwing Technology vs. Gansu Jiu Steel
Performance |
| Timeline |
| Dongguan Chitwing |
| Gansu Jiu Steel |
Dongguan Chitwing and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Chitwing and Gansu Jiu
The main advantage of trading using opposite Dongguan Chitwing and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Chitwing 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.| Dongguan Chitwing vs. Agricultural Bank of | Dongguan Chitwing vs. Industrial and Commercial | Dongguan Chitwing vs. Bank of China | Dongguan Chitwing vs. PetroChina Co Ltd |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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