Correlation Between Shenzhen Longsys and Gansu Jiu
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By analyzing existing cross correlation between Shenzhen Longsys Electronics and Gansu Jiu Steel, you can compare the effects of market volatilities on Shenzhen Longsys 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 Shenzhen Longsys with a short position of Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Longsys and Gansu Jiu.
Diversification Opportunities for Shenzhen Longsys and Gansu Jiu
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Gansu is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Longsys Electronics 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 Shenzhen Longsys 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 Shenzhen Longsys Electronics 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 Shenzhen Longsys i.e., Shenzhen Longsys and Gansu Jiu go up and down completely randomly.
Pair Corralation between Shenzhen Longsys and Gansu Jiu
Assuming the 90 days trading horizon Shenzhen Longsys is expected to generate 1.37 times less return on investment than Gansu Jiu. In addition to that, Shenzhen Longsys is 1.23 times more volatile than Gansu Jiu Steel. It trades about 0.13 of its total potential returns per unit of risk. Gansu Jiu Steel is currently generating about 0.22 per unit of volatility. If you would invest 121.00 in Gansu Jiu Steel on September 12, 2024 and sell it today you would earn a total of 72.00 from holding Gansu Jiu Steel or generate 59.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Longsys Electronics vs. Gansu Jiu Steel
Performance |
| Timeline |
| Shenzhen Longsys Ele |
| Gansu Jiu Steel |
Shenzhen Longsys and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Longsys and Gansu Jiu
The main advantage of trading using opposite Shenzhen Longsys and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Longsys 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.| Shenzhen Longsys vs. Gansu Jiu Steel | Shenzhen Longsys vs. Shandong Mining Machinery | Shenzhen Longsys vs. Aba Chemicals Corp | Shenzhen Longsys vs. BlueFocus Communication Group |
| 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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