Correlation Between Gansu Jiu and Shenzhen Silver
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By analyzing existing cross correlation between Gansu Jiu Steel and Shenzhen Silver Basis, you can compare the effects of market volatilities on Gansu Jiu and Shenzhen Silver 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 Shenzhen Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Shenzhen Silver.
Diversification Opportunities for Gansu Jiu and Shenzhen Silver
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gansu and Shenzhen is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis 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 Shenzhen Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Gansu Jiu and Shenzhen Silver
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 0.98 times more return on investment than Shenzhen Silver. However, Gansu Jiu Steel is 1.02 times less risky than Shenzhen Silver. It trades about -0.49 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about -0.7 per unit of risk. If you would invest 186.00 in Gansu Jiu Steel on October 9, 2024 and sell it today you would lose (36.00) from holding Gansu Jiu Steel or give up 19.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Shenzhen Silver Basis
Performance |
| Timeline |
| Gansu Jiu Steel |
| Shenzhen Silver Basis |
Gansu Jiu and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Shenzhen Silver
The main advantage of trading using opposite Gansu Jiu and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Shenzhen Silver 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 Shenzhen Silver will offset losses from the drop in Shenzhen Silver's 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 |
| Shenzhen Silver vs. Industrial and Commercial | Shenzhen Silver vs. China Construction Bank | Shenzhen Silver vs. Agricultural Bank of | Shenzhen Silver 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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