Correlation Between Gansu Jiu and Dongguan Chitwing
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By analyzing existing cross correlation between Gansu Jiu Steel and Dongguan Chitwing Technology, you can compare the effects of market volatilities on Gansu Jiu and Dongguan Chitwing 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 Dongguan Chitwing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Dongguan Chitwing.
Diversification Opportunities for Gansu Jiu and Dongguan Chitwing
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and Dongguan is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Dongguan Chitwing Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Chitwing 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 Dongguan Chitwing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Chitwing has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Dongguan Chitwing go up and down completely randomly.
Pair Corralation between Gansu Jiu and Dongguan Chitwing
Assuming the 90 days trading horizon Gansu Jiu is expected to generate 1.27 times less return on investment than Dongguan Chitwing. In addition to that, Gansu Jiu is 1.18 times more volatile than Dongguan Chitwing Technology. It trades about 0.14 of its total potential returns per unit of risk. Dongguan Chitwing Technology is currently generating about 0.22 per unit of volatility. If you would invest 2,242 in Dongguan Chitwing Technology on August 24, 2024 and sell it today you would earn a total of 478.00 from holding Dongguan Chitwing Technology or generate 21.32% 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. Dongguan Chitwing Technology
Performance |
| Timeline |
| Gansu Jiu Steel |
| Dongguan Chitwing |
Gansu Jiu and Dongguan Chitwing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Dongguan Chitwing
The main advantage of trading using opposite Gansu Jiu and Dongguan Chitwing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Dongguan Chitwing 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 Dongguan Chitwing will offset losses from the drop in Dongguan Chitwing's long position.| Gansu Jiu vs. Shandong Gold Mining | Gansu Jiu vs. Inner Mongolia BaoTou | Gansu Jiu vs. Jiangxi Ganfeng Lithium | Gansu Jiu vs. Yunnan Aluminium Co |
| Dongguan Chitwing vs. Industrial and Commercial | Dongguan Chitwing vs. China Construction Bank | Dongguan Chitwing vs. Agricultural Bank of | Dongguan Chitwing 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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