Correlation Between Fujian Nanwang and Gansu Jiu
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By analyzing existing cross correlation between Fujian Nanwang Environment and Gansu Jiu Steel, you can compare the effects of market volatilities on Fujian Nanwang 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 Fujian Nanwang with a short position of Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and Gansu Jiu.
Diversification Opportunities for Fujian Nanwang and Gansu Jiu
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Gansu is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment 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 Fujian Nanwang 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 Fujian Nanwang Environment 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 Fujian Nanwang i.e., Fujian Nanwang and Gansu Jiu go up and down completely randomly.
Pair Corralation between Fujian Nanwang and Gansu Jiu
Assuming the 90 days trading horizon Fujian Nanwang Environment is expected to under-perform the Gansu Jiu. In addition to that, Fujian Nanwang is 1.4 times more volatile than Gansu Jiu Steel. It trades about -0.04 of its total potential returns per unit of risk. Gansu Jiu Steel is currently generating about 0.0 per unit of volatility. If you would invest 173.00 in Gansu Jiu Steel on August 30, 2024 and sell it today you would lose (11.00) from holding Gansu Jiu Steel or give up 6.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 74.58% |
| Values | Daily Returns |
Fujian Nanwang Environment vs. Gansu Jiu Steel
Performance |
| Timeline |
| Fujian Nanwang Envir |
| Gansu Jiu Steel |
Fujian Nanwang and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Nanwang and Gansu Jiu
The main advantage of trading using opposite Fujian Nanwang and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang 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.| Fujian Nanwang vs. Shandong Gold Mining | Fujian Nanwang vs. Rongsheng Petrochemical Co | Fujian Nanwang vs. Inner Mongolia BaoTou | Fujian Nanwang vs. Jiangxi Ganfeng Lithium |
| Gansu Jiu vs. Shandong Gold Mining | Gansu Jiu vs. Rongsheng Petrochemical Co | Gansu Jiu vs. Inner Mongolia BaoTou | Gansu Jiu vs. Jiangxi Ganfeng Lithium |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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