Correlation Between Gansu Jiu and Xian International
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By analyzing existing cross correlation between Gansu Jiu Steel and Xian International Medical, you can compare the effects of market volatilities on Gansu Jiu and Xian International 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 Gansu Jiu with a short position of Xian International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Xian International.
Diversification Opportunities for Gansu Jiu and Xian International
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and Xian is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Xian International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian International and Gansu Jiu 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 Gansu Jiu Steel are associated (or correlated) with Xian International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian International has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Xian International go up and down completely randomly.
Pair Corralation between Gansu Jiu and Xian International
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 1.05 times more return on investment than Xian International. However, Gansu Jiu is 1.05 times more volatile than Xian International Medical. It trades about 0.22 of its potential returns per unit of risk. Xian International Medical is currently generating about 0.16 per unit of risk. 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 | Strong |
| Accuracy | 98.28% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Xian International Medical
Performance |
| Timeline |
| Gansu Jiu Steel |
| Xian International |
Gansu Jiu and Xian International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Xian International
The main advantage of trading using opposite Gansu Jiu and Xian International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Xian International 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 Xian International will offset losses from the drop in Xian International's long position.| 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 |
| Xian International vs. HaiXin Foods Co | Xian International vs. JiShi Media Co | Xian International vs. Gan Yuan Foods | Xian International vs. Threes Company Media |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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