Correlation Between Gansu Jiu and Beijing SPC
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By analyzing existing cross correlation between Gansu Jiu Steel and Beijing SPC Environment, you can compare the effects of market volatilities on Gansu Jiu and Beijing SPC 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 Beijing SPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Beijing SPC.
Diversification Opportunities for Gansu Jiu and Beijing SPC
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gansu and Beijing is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Beijing SPC Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing SPC Environment 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 Beijing SPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing SPC Environment has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Beijing SPC go up and down completely randomly.
Pair Corralation between Gansu Jiu and Beijing SPC
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 1.12 times more return on investment than Beijing SPC. However, Gansu Jiu is 1.12 times more volatile than Beijing SPC Environment. It trades about 0.0 of its potential returns per unit of risk. Beijing SPC Environment is currently generating about -0.03 per unit of risk. If you would invest 173.00 in Gansu Jiu Steel on August 30, 2024 and sell it today you would lose (11.00) from holding Gansu Jiu Steel or give up 6.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Beijing SPC Environment
Performance |
| Timeline |
| Gansu Jiu Steel |
| Beijing SPC Environment |
Gansu Jiu and Beijing SPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Beijing SPC
The main advantage of trading using opposite Gansu Jiu and Beijing SPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Beijing SPC 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 Beijing SPC will offset losses from the drop in Beijing SPC's long position.| Gansu Jiu vs. Shandong Gold Mining | Gansu Jiu vs. Rongsheng Petrochemical Co | Gansu Jiu vs. Inner Mongolia BaoTou | Gansu Jiu vs. Jiangxi Ganfeng Lithium |
| Beijing SPC vs. PetroChina Co Ltd | Beijing SPC vs. China State Construction | Beijing SPC vs. China Mobile Limited | Beijing SPC vs. Industrial and Commercial |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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