Correlation Between Jinsanjiang Silicon and Gansu Jiu
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By analyzing existing cross correlation between Jinsanjiang Silicon Material and Gansu Jiu Steel, you can compare the effects of market volatilities on Jinsanjiang Silicon 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 Jinsanjiang Silicon with a short position of Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinsanjiang Silicon and Gansu Jiu.
Diversification Opportunities for Jinsanjiang Silicon and Gansu Jiu
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinsanjiang and Gansu is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Jinsanjiang Silicon Material 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 Jinsanjiang Silicon 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 Jinsanjiang Silicon Material 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 Jinsanjiang Silicon i.e., Jinsanjiang Silicon and Gansu Jiu go up and down completely randomly.
Pair Corralation between Jinsanjiang Silicon and Gansu Jiu
Assuming the 90 days trading horizon Jinsanjiang Silicon Material is expected to generate 2.81 times more return on investment than Gansu Jiu. However, Jinsanjiang Silicon is 2.81 times more volatile than Gansu Jiu Steel. It trades about -0.07 of its potential returns per unit of risk. Gansu Jiu Steel is currently generating about -0.66 per unit of risk. If you would invest 1,151 in Jinsanjiang Silicon Material on October 12, 2024 and sell it today you would lose (115.00) from holding Jinsanjiang Silicon Material or give up 9.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinsanjiang Silicon Material vs. Gansu Jiu Steel
Performance |
| Timeline |
| Jinsanjiang Silicon |
| Gansu Jiu Steel |
Jinsanjiang Silicon and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinsanjiang Silicon and Gansu Jiu
The main advantage of trading using opposite Jinsanjiang Silicon and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinsanjiang Silicon 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.| Jinsanjiang Silicon vs. Guocheng Mining Co | Jinsanjiang Silicon vs. Shenyang Blue Silver | Jinsanjiang Silicon vs. Jinhui Mining Co | Jinsanjiang Silicon vs. Anhui Transport Consulting |
| Gansu Jiu vs. Southern PublishingMedia Co | Gansu Jiu vs. Jinsanjiang Silicon Material | Gansu Jiu vs. Beijing Kaiwen Education | Gansu Jiu vs. Jiangsu Phoenix Publishing |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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