Correlation Between Gansu Jiu and Success Electronics
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By analyzing existing cross correlation between Gansu Jiu Steel and Success Electronics, you can compare the effects of market volatilities on Gansu Jiu and Success Electronics 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 Success Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Success Electronics.
Diversification Opportunities for Gansu Jiu and Success Electronics
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and Success is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Success Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Success Electronics 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 Success Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Success Electronics has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Success Electronics go up and down completely randomly.
Pair Corralation between Gansu Jiu and Success Electronics
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 0.93 times more return on investment than Success Electronics. However, Gansu Jiu Steel is 1.08 times less risky than Success Electronics. It trades about 0.1 of its potential returns per unit of risk. Success Electronics is currently generating about 0.06 per unit of risk. If you would invest 179.00 in Gansu Jiu Steel on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Gansu Jiu Steel or generate 5.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Success Electronics
Performance |
| Timeline |
| Gansu Jiu Steel |
| Success Electronics |
Gansu Jiu and Success Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Success Electronics
The main advantage of trading using opposite Gansu Jiu and Success Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Success Electronics 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 Success Electronics will offset losses from the drop in Success Electronics' long position.| Gansu Jiu vs. Zijin Mining Group | Gansu Jiu vs. Wanhua Chemical Group | Gansu Jiu vs. Baoshan Iron Steel | Gansu Jiu vs. Shandong Gold Mining |
| Success Electronics vs. Industrial and Commercial | Success Electronics vs. Agricultural Bank of | Success Electronics vs. China Construction Bank | Success Electronics vs. Bank of China |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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