Correlation Between Guilin Seamild and Gansu Jiu
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By analyzing existing cross correlation between Guilin Seamild Foods and Gansu Jiu Steel, you can compare the effects of market volatilities on Guilin Seamild 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 Guilin Seamild with a short position of Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Gansu Jiu.
Diversification Opportunities for Guilin Seamild and Gansu Jiu
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guilin and Gansu is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods 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 Guilin Seamild 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 Guilin Seamild Foods 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 Guilin Seamild i.e., Guilin Seamild and Gansu Jiu go up and down completely randomly.
Pair Corralation between Guilin Seamild and Gansu Jiu
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to under-perform the Gansu Jiu. In addition to that, Guilin Seamild is 1.53 times more volatile than Gansu Jiu Steel. It trades about -0.15 of its total potential returns per unit of risk. Gansu Jiu Steel is currently generating about -0.18 per unit of volatility. If you would invest 156.00 in Gansu Jiu Steel on November 3, 2024 and sell it today you would lose (9.00) from holding Gansu Jiu Steel or give up 5.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Gansu Jiu Steel
Performance |
| Timeline |
| Guilin Seamild Foods |
| Gansu Jiu Steel |
Guilin Seamild and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Gansu Jiu
The main advantage of trading using opposite Guilin Seamild and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild 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.| Guilin Seamild vs. Hubei Xingfa Chemicals | Guilin Seamild vs. Harbin Air Conditioning | Guilin Seamild vs. Henan Shuanghui Investment | Guilin Seamild vs. MayAir Technology Co |
| Gansu Jiu vs. Zoje Resources Investment | Gansu Jiu vs. Malion New Materials | Gansu Jiu vs. Guangdong Sunwill Precising | Gansu Jiu vs. Shanghai Material Trading |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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