Correlation Between Gansu Jiu and Inner Mongolia
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By analyzing existing cross correlation between Gansu Jiu Steel and Inner Mongolia Yuan, you can compare the effects of market volatilities on Gansu Jiu and Inner Mongolia 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 Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Inner Mongolia.
Diversification Opportunities for Gansu Jiu and Inner Mongolia
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Inner is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Inner Mongolia Yuan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia Yuan 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 Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia Yuan has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Inner Mongolia go up and down completely randomly.
Pair Corralation between Gansu Jiu and Inner Mongolia
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 0.82 times more return on investment than Inner Mongolia. However, Gansu Jiu Steel is 1.23 times less risky than Inner Mongolia. It trades about 0.01 of its potential returns per unit of risk. Inner Mongolia Yuan is currently generating about -0.01 per unit of risk. If you would invest 169.00 in Gansu Jiu Steel on September 2, 2024 and sell it today you would lose (3.00) from holding Gansu Jiu Steel or give up 1.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Inner Mongolia Yuan
Performance |
| Timeline |
| Gansu Jiu Steel |
| Inner Mongolia Yuan |
Gansu Jiu and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Inner Mongolia
The main advantage of trading using opposite Gansu Jiu and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.| Gansu Jiu vs. Western Metal Materials | Gansu Jiu vs. Chengtun Mining Group | Gansu Jiu vs. Uroica Mining Safety | Gansu Jiu vs. Beijing HuaYuanYiTong Thermal |
| Inner Mongolia vs. Jinhe Biotechnology Co | Inner Mongolia vs. Lootom Telcovideo Network | Inner Mongolia vs. Minmetals Capital Co | Inner Mongolia vs. Shenzhen Topway Video |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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