Correlation Between Jiangsu Hoperun and Gansu Jiu
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By analyzing existing cross correlation between Jiangsu Hoperun Software and Gansu Jiu Steel, you can compare the effects of market volatilities on Jiangsu Hoperun 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 Jiangsu Hoperun with a short position of Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Hoperun and Gansu Jiu.
Diversification Opportunities for Jiangsu Hoperun and Gansu Jiu
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Gansu is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Hoperun Software 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 Jiangsu Hoperun 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 Jiangsu Hoperun Software 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 Jiangsu Hoperun i.e., Jiangsu Hoperun and Gansu Jiu go up and down completely randomly.
Pair Corralation between Jiangsu Hoperun and Gansu Jiu
Assuming the 90 days trading horizon Jiangsu Hoperun Software is expected to under-perform the Gansu Jiu. In addition to that, Jiangsu Hoperun is 1.27 times more volatile than Gansu Jiu Steel. It trades about -0.24 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Hoperun Software vs. Gansu Jiu Steel
Performance |
| Timeline |
| Jiangsu Hoperun Software |
| Gansu Jiu Steel |
Jiangsu Hoperun and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Hoperun and Gansu Jiu
The main advantage of trading using opposite Jiangsu Hoperun and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Hoperun 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.| Jiangsu Hoperun vs. Emdoor Information Co | Jiangsu Hoperun vs. Guangdong Silvere Sci | Jiangsu Hoperun vs. Zhengzhou Coal Mining | Jiangsu Hoperun vs. Keda Clean Energy |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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