Correlation Between Gansu Jiu and Hainan Drinda
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By analyzing existing cross correlation between Gansu Jiu Steel and Hainan Drinda Automotive, you can compare the effects of market volatilities on Gansu Jiu and Hainan Drinda 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 Drinda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Hainan Drinda.
Diversification Opportunities for Gansu Jiu and Hainan Drinda
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gansu and Hainan is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Hainan Drinda Automotive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Drinda Automotive 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 Drinda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Drinda Automotive has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Hainan Drinda go up and down completely randomly.
Pair Corralation between Gansu Jiu and Hainan Drinda
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 0.59 times more return on investment than Hainan Drinda. However, Gansu Jiu Steel is 1.71 times less risky than Hainan Drinda. It trades about 0.05 of its potential returns per unit of risk. Hainan Drinda Automotive is currently generating about 0.01 per unit of risk. If you would invest 154.00 in Gansu Jiu Steel on September 12, 2024 and sell it today you would earn a total of 39.00 from holding Gansu Jiu Steel or generate 25.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Hainan Drinda Automotive
Performance |
| Timeline |
| Gansu Jiu Steel |
| Hainan Drinda Automotive |
Gansu Jiu and Hainan Drinda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Hainan Drinda
The main advantage of trading using opposite Gansu Jiu and Hainan Drinda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Hainan Drinda 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 Drinda will offset losses from the drop in Hainan Drinda's long position.| Gansu Jiu vs. China Construction Bank | Gansu Jiu vs. Industrial Bank Co | Gansu Jiu vs. Gansu Huangtai Wine marketing | Gansu Jiu vs. Guosheng Financial Holding |
| Hainan Drinda vs. Gansu Jiu Steel | Hainan Drinda vs. Shandong Mining Machinery | Hainan Drinda vs. Aba Chemicals Corp | Hainan Drinda vs. BlueFocus Communication Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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