Correlation Between Hainan Drinda and Gansu Jiu
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By analyzing existing cross correlation between Hainan Drinda Automotive and Gansu Jiu Steel, you can compare the effects of market volatilities on Hainan Drinda 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 Hainan Drinda with a short position of Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Drinda and Gansu Jiu.
Diversification Opportunities for Hainan Drinda and Gansu Jiu
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hainan and Gansu is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Drinda Automotive 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 Hainan Drinda 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 Hainan Drinda Automotive 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 Hainan Drinda i.e., Hainan Drinda and Gansu Jiu go up and down completely randomly.
Pair Corralation between Hainan Drinda and Gansu Jiu
Assuming the 90 days trading horizon Hainan Drinda Automotive is expected to under-perform the Gansu Jiu. In addition to that, Hainan Drinda is 1.75 times more volatile than Gansu Jiu Steel. It trades about -0.13 of its total potential returns per unit of risk. Gansu Jiu Steel is currently generating about 0.15 per unit of volatility. If you would invest 179.00 in Gansu Jiu Steel on September 13, 2024 and sell it today you would earn a total of 14.00 from holding Gansu Jiu Steel or generate 7.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Drinda Automotive vs. Gansu Jiu Steel
Performance |
| Timeline |
| Hainan Drinda Automotive |
| Gansu Jiu Steel |
Hainan Drinda and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Drinda and Gansu Jiu
The main advantage of trading using opposite Hainan Drinda and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Drinda 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.| Hainan Drinda vs. Henan Shuanghui Investment | Hainan Drinda vs. Zhongrun Resources Investment | Hainan Drinda vs. Shenzhen Centralcon Investment | Hainan Drinda vs. Jiangsu Financial Leasing |
| Gansu Jiu vs. China Construction Bank | Gansu Jiu vs. Industrial Bank Co | Gansu Jiu vs. Gansu Huangtai Wine marketing | Gansu Jiu vs. Guosheng Financial Holding |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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