Correlation Between Inner Mongolia and Gansu Jiu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Inner Mongolia BaoTou and Gansu Jiu Steel, you can compare the effects of market volatilities on Inner Mongolia 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 Inner Mongolia with a short position of Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Gansu Jiu.
Diversification Opportunities for Inner Mongolia and Gansu Jiu
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Inner and Gansu is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia BaoTou 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 Inner Mongolia 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 Inner Mongolia BaoTou 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 Inner Mongolia i.e., Inner Mongolia and Gansu Jiu go up and down completely randomly.
Pair Corralation between Inner Mongolia and Gansu Jiu
Assuming the 90 days trading horizon Inner Mongolia BaoTou is expected to generate 0.91 times more return on investment than Gansu Jiu. However, Inner Mongolia BaoTou is 1.1 times less risky than Gansu Jiu. It trades about 0.06 of its potential returns per unit of risk. Gansu Jiu Steel is currently generating about 0.02 per unit of risk. If you would invest 153.00 in Inner Mongolia BaoTou on August 26, 2024 and sell it today you would earn a total of 41.00 from holding Inner Mongolia BaoTou or generate 26.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inner Mongolia BaoTou vs. Gansu Jiu Steel
Performance |
| Timeline |
| Inner Mongolia BaoTou |
| Gansu Jiu Steel |
Inner Mongolia and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and Gansu Jiu
The main advantage of trading using opposite Inner Mongolia and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia 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.| Inner Mongolia vs. Guangdong Shenglu Telecommunication | Inner Mongolia vs. Anhui Jianghuai Automobile | Inner Mongolia vs. Sunwave Communications Co | Inner Mongolia vs. Changchun Faway Automobile |
| Gansu Jiu vs. Wanhua Chemical Group | Gansu Jiu vs. Shandong Gold Mining | Gansu Jiu vs. Rongsheng Petrochemical Co | Gansu Jiu vs. Inner Mongolia BaoTou |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |