Correlation Between Gansu Jiu and Suofeiya Home
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By analyzing existing cross correlation between Gansu Jiu Steel and Suofeiya Home Collection, you can compare the effects of market volatilities on Gansu Jiu and Suofeiya Home 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 Suofeiya Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Suofeiya Home.
Diversification Opportunities for Gansu Jiu and Suofeiya Home
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Suofeiya is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Suofeiya Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suofeiya Home Collection 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 Suofeiya Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suofeiya Home Collection has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Suofeiya Home go up and down completely randomly.
Pair Corralation between Gansu Jiu and Suofeiya Home
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Suofeiya Home. In addition to that, Gansu Jiu is 1.03 times more volatile than Suofeiya Home Collection. It trades about -0.3 of its total potential returns per unit of risk. Suofeiya Home Collection is currently generating about -0.3 per unit of volatility. If you would invest 1,757 in Suofeiya Home Collection on October 25, 2024 and sell it today you would lose (201.00) from holding Suofeiya Home Collection or give up 11.44% 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. Suofeiya Home Collection
Performance |
| Timeline |
| Gansu Jiu Steel |
| Suofeiya Home Collection |
Gansu Jiu and Suofeiya Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Suofeiya Home
The main advantage of trading using opposite Gansu Jiu and Suofeiya Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Suofeiya Home 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 Suofeiya Home will offset losses from the drop in Suofeiya Home's long position.| Gansu Jiu vs. Dynagreen Environmental Protection | Gansu Jiu vs. Universal Scientific Industrial | Gansu Jiu vs. Anyang Iron Steel | Gansu Jiu vs. Tongxing Environmental Protection |
| Suofeiya Home vs. PetroChina Co Ltd | Suofeiya Home vs. Gansu Jiu Steel | Suofeiya Home vs. Ming Yang Smart | Suofeiya Home vs. Aba Chemicals Corp |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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