Correlation Between Gansu Jiu and XinJiang GuoTong
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By analyzing existing cross correlation between Gansu Jiu Steel and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Gansu Jiu and XinJiang GuoTong 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 XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and XinJiang GuoTong.
Diversification Opportunities for Gansu Jiu and XinJiang GuoTong
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and XinJiang is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline 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 XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Gansu Jiu and XinJiang GuoTong
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 0.52 times more return on investment than XinJiang GuoTong. However, Gansu Jiu Steel is 1.93 times less risky than XinJiang GuoTong. It trades about -0.28 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about -0.15 per unit of risk. If you would invest 165.00 in Gansu Jiu Steel on October 24, 2024 and sell it today you would lose (18.00) from holding Gansu Jiu Steel or give up 10.91% 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. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Gansu Jiu Steel |
| XinJiang GuoTong Pipeline |
Gansu Jiu and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and XinJiang GuoTong
The main advantage of trading using opposite Gansu Jiu and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Gansu Jiu vs. Sichuan Hebang Biotechnology | Gansu Jiu vs. Guilin Seamild Foods | Gansu Jiu vs. HaiXin Foods Co | Gansu Jiu vs. Zhongjing Food Co |
| XinJiang GuoTong vs. Nuode Investment Co | XinJiang GuoTong vs. Vanfund Urban Investment | XinJiang GuoTong vs. Xiandai Investment Co | XinJiang GuoTong vs. Kontour Medical Technology |
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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