Correlation Between 159005 and Gansu Yasheng
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By analyzing existing cross correlation between 159005 and Gansu Yasheng Industrial, you can compare the effects of market volatilities on 159005 and Gansu Yasheng 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 159005 with a short position of Gansu Yasheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Gansu Yasheng.
Diversification Opportunities for 159005 and Gansu Yasheng
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 159005 and Gansu is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding 159005 and Gansu Yasheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Yasheng Industrial and 159005 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 159005 are associated (or correlated) with Gansu Yasheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Yasheng Industrial has no effect on the direction of 159005 i.e., 159005 and Gansu Yasheng go up and down completely randomly.
Pair Corralation between 159005 and Gansu Yasheng
Assuming the 90 days trading horizon 159005 is expected to generate 7.73 times less return on investment than Gansu Yasheng. But when comparing it to its historical volatility, 159005 is 73.42 times less risky than Gansu Yasheng. It trades about 0.14 of its potential returns per unit of risk. Gansu Yasheng Industrial is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 308.00 in Gansu Yasheng Industrial on September 13, 2024 and sell it today you would earn a total of 16.00 from holding Gansu Yasheng Industrial or generate 5.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. Gansu Yasheng Industrial
Performance |
| Timeline |
| 159005 |
| Gansu Yasheng Industrial |
159005 and Gansu Yasheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Gansu Yasheng
The main advantage of trading using opposite 159005 and Gansu Yasheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 position performs unexpectedly, Gansu Yasheng 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 Yasheng will offset losses from the drop in Gansu Yasheng's long position.The idea behind 159005 and Gansu Yasheng Industrial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Gansu Yasheng vs. New China Life | Gansu Yasheng vs. Ming Yang Smart | Gansu Yasheng vs. 159681 | Gansu Yasheng vs. 159005 |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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