Correlation Between Hangzhou Gisway and Gansu Jiu
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By analyzing existing cross correlation between Hangzhou Gisway Information and Gansu Jiu Steel, you can compare the effects of market volatilities on Hangzhou Gisway 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 Hangzhou Gisway with a short position of Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gisway and Gansu Jiu.
Diversification Opportunities for Hangzhou Gisway and Gansu Jiu
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and Gansu is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gisway Information 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 Hangzhou Gisway 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 Hangzhou Gisway Information 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 Hangzhou Gisway i.e., Hangzhou Gisway and Gansu Jiu go up and down completely randomly.
Pair Corralation between Hangzhou Gisway and Gansu Jiu
Assuming the 90 days trading horizon Hangzhou Gisway is expected to generate 3.27 times less return on investment than Gansu Jiu. But when comparing it to its historical volatility, Hangzhou Gisway Information is 1.8 times less risky than Gansu Jiu. It trades about 0.11 of its potential returns per unit of risk. Gansu Jiu Steel is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 140.00 in Gansu Jiu Steel on September 13, 2024 and sell it today you would earn a total of 53.00 from holding Gansu Jiu Steel or generate 37.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Gisway Information vs. Gansu Jiu Steel
Performance |
| Timeline |
| Hangzhou Gisway Info |
| Gansu Jiu Steel |
Hangzhou Gisway and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gisway and Gansu Jiu
The main advantage of trading using opposite Hangzhou Gisway and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gisway 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.| Hangzhou Gisway vs. China Petroleum Chemical | Hangzhou Gisway vs. PetroChina Co Ltd | Hangzhou Gisway vs. China State Construction | Hangzhou Gisway vs. China Railway 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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