Correlation Between Gansu Jiu and Soyea Technology
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By analyzing existing cross correlation between Gansu Jiu Steel and Soyea Technology Co, you can compare the effects of market volatilities on Gansu Jiu and Soyea Technology 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 Soyea Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Soyea Technology.
Diversification Opportunities for Gansu Jiu and Soyea Technology
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Soyea is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Soyea Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soyea Technology 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 Soyea Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soyea Technology has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Soyea Technology go up and down completely randomly.
Pair Corralation between Gansu Jiu and Soyea Technology
Assuming the 90 days trading horizon Gansu Jiu is expected to generate 3.63 times less return on investment than Soyea Technology. But when comparing it to its historical volatility, Gansu Jiu Steel is 1.47 times less risky than Soyea Technology. It trades about 0.11 of its potential returns per unit of risk. Soyea Technology Co is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 521.00 in Soyea Technology Co on November 27, 2024 and sell it today you would earn a total of 55.00 from holding Soyea Technology Co or generate 10.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Soyea Technology Co
Performance |
| Timeline |
| Gansu Jiu Steel |
| Soyea Technology |
Gansu Jiu and Soyea Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Soyea Technology
The main advantage of trading using opposite Gansu Jiu and Soyea Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Soyea Technology 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 Soyea Technology will offset losses from the drop in Soyea Technology's long position.| Gansu Jiu vs. Porton Fine Chemicals | Gansu Jiu vs. HeBei Jinniu Chemical | Gansu Jiu vs. Hengli Petrochemical Co | Gansu Jiu vs. Union Semiconductor Co |
| Soyea Technology vs. China Eastern Airlines | Soyea Technology vs. Aofu Environmental Technology | Soyea Technology vs. SSAW Hotels Resorts | Soyea Technology vs. Bengang Steel Plates |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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