Correlation Between Gansu Jiu and Hunan Nanling
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By analyzing existing cross correlation between Gansu Jiu Steel and Hunan Nanling Industrial, you can compare the effects of market volatilities on Gansu Jiu and Hunan Nanling 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 Hunan Nanling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Hunan Nanling.
Diversification Opportunities for Gansu Jiu and Hunan Nanling
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Hunan is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Hunan Nanling Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Nanling Industrial 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 Hunan Nanling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Nanling Industrial has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Hunan Nanling go up and down completely randomly.
Pair Corralation between Gansu Jiu and Hunan Nanling
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 0.99 times more return on investment than Hunan Nanling. However, Gansu Jiu Steel is 1.01 times less risky than Hunan Nanling. It trades about -0.07 of its potential returns per unit of risk. Hunan Nanling Industrial is currently generating about -0.36 per unit of risk. If you would invest 150.00 in Gansu Jiu Steel on November 4, 2024 and sell it today you would lose (3.00) from holding Gansu Jiu Steel or give up 2.0% 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. Hunan Nanling Industrial
Performance |
| Timeline |
| Gansu Jiu Steel |
| Hunan Nanling Industrial |
Gansu Jiu and Hunan Nanling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Hunan Nanling
The main advantage of trading using opposite Gansu Jiu and Hunan Nanling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Hunan Nanling 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 Hunan Nanling will offset losses from the drop in Hunan Nanling's long position.| Gansu Jiu vs. Eyebright Medical Technology | Gansu Jiu vs. FSPG Hi Tech Co | Gansu Jiu vs. Hengkang Medical Group | Gansu Jiu vs. Maxvision Technology Corp |
| Hunan Nanling vs. Xiamen Insight Investment | Hunan Nanling vs. Sichuan Yahua Industrial | Hunan Nanling vs. Hainan Mining Co | Hunan Nanling vs. Shaanxi Energy Investment |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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