Correlation Between Gansu Jiu and Sportsoul
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By analyzing existing cross correlation between Gansu Jiu Steel and Sportsoul Co Ltd, you can compare the effects of market volatilities on Gansu Jiu and Sportsoul 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 Sportsoul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Sportsoul.
Diversification Opportunities for Gansu Jiu and Sportsoul
Poor diversification
The 3 months correlation between Gansu and Sportsoul is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Sportsoul Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsoul 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 Sportsoul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sportsoul has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Sportsoul go up and down completely randomly.
Pair Corralation between Gansu Jiu and Sportsoul
Assuming the 90 days trading horizon Gansu Jiu is expected to generate 17.69 times less return on investment than Sportsoul. But when comparing it to its historical volatility, Gansu Jiu Steel is 1.89 times less risky than Sportsoul. It trades about 0.01 of its potential returns per unit of risk. Sportsoul Co Ltd is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,278 in Sportsoul Co Ltd on September 12, 2024 and sell it today you would earn a total of 110.00 from holding Sportsoul Co Ltd or generate 8.61% 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. Sportsoul Co Ltd
Performance |
| Timeline |
| Gansu Jiu Steel |
| Sportsoul |
Gansu Jiu and Sportsoul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Sportsoul
The main advantage of trading using opposite Gansu Jiu and Sportsoul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Sportsoul 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 Sportsoul will offset losses from the drop in Sportsoul's long position.| Gansu Jiu vs. Zijin Mining Group | Gansu Jiu vs. Wanhua Chemical Group | Gansu Jiu vs. Baoshan Iron Steel | Gansu Jiu vs. Rongsheng Petrochemical Co |
| Sportsoul vs. Lutian Machinery Co | Sportsoul vs. PetroChina Co Ltd | Sportsoul vs. Bank of China | Sportsoul vs. Gansu Jiu Steel |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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