Correlation Between Sharetronic Data and Gansu Jiu
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By analyzing existing cross correlation between Sharetronic Data Technology and Gansu Jiu Steel, you can compare the effects of market volatilities on Sharetronic Data 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 Sharetronic Data with a short position of Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sharetronic Data and Gansu Jiu.
Diversification Opportunities for Sharetronic Data and Gansu Jiu
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sharetronic and Gansu is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Sharetronic Data 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 Sharetronic Data 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 Sharetronic Data 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 Sharetronic Data i.e., Sharetronic Data and Gansu Jiu go up and down completely randomly.
Pair Corralation between Sharetronic Data and Gansu Jiu
Assuming the 90 days trading horizon Sharetronic Data Technology is expected to under-perform the Gansu Jiu. In addition to that, Sharetronic Data is 3.34 times more volatile than Gansu Jiu Steel. It trades about -0.07 of its total potential returns per unit of risk. Gansu Jiu Steel is currently generating about -0.07 per unit of volatility. If you would invest 150.00 in Gansu Jiu Steel on November 7, 2024 and sell it today you would lose (3.00) from holding Gansu Jiu Steel or give up 2.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sharetronic Data Technology vs. Gansu Jiu Steel
Performance |
| Timeline |
| Sharetronic Data Tec |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gansu Jiu Steel |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sharetronic Data and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sharetronic Data and Gansu Jiu
The main advantage of trading using opposite Sharetronic Data and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sharetronic Data 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.The idea behind Sharetronic Data Technology and Gansu Jiu Steel 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.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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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