Correlation Between Gansu Jiu and Hainan Shuangcheng
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By analyzing existing cross correlation between Gansu Jiu Steel and Hainan Shuangcheng Pharmaceut, you can compare the effects of market volatilities on Gansu Jiu and Hainan Shuangcheng 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 Hainan Shuangcheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Hainan Shuangcheng.
Diversification Opportunities for Gansu Jiu and Hainan Shuangcheng
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Hainan is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Hainan Shuangcheng Pharmaceut in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Shuangcheng 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 Hainan Shuangcheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Shuangcheng has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Hainan Shuangcheng go up and down completely randomly.
Pair Corralation between Gansu Jiu and Hainan Shuangcheng
Assuming the 90 days trading horizon Gansu Jiu is expected to generate 6.76 times less return on investment than Hainan Shuangcheng. But when comparing it to its historical volatility, Gansu Jiu Steel is 2.28 times less risky than Hainan Shuangcheng. It trades about 0.03 of its potential returns per unit of risk. Hainan Shuangcheng Pharmaceut is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,340 in Hainan Shuangcheng Pharmaceut on December 1, 2024 and sell it today you would earn a total of 73.00 from holding Hainan Shuangcheng Pharmaceut or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Hainan Shuangcheng Pharmaceut
Performance |
| Timeline |
| Gansu Jiu Steel |
| Hainan Shuangcheng |
Gansu Jiu and Hainan Shuangcheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Hainan Shuangcheng
The main advantage of trading using opposite Gansu Jiu and Hainan Shuangcheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Hainan Shuangcheng 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 Hainan Shuangcheng will offset losses from the drop in Hainan Shuangcheng's long position.| Gansu Jiu vs. China Sports Industry | Gansu Jiu vs. Lander Sports Development | Gansu Jiu vs. Jiangsu Jinling Sports | Gansu Jiu vs. Suzhou Xingye Material |
| Hainan Shuangcheng vs. Masterwork Machinery | Hainan Shuangcheng vs. Hongrun Construction Group | Hainan Shuangcheng vs. Beijing Kingsoft Office | Hainan Shuangcheng vs. Zhe Jiang Headman |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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