Correlation Between Gansu Jiu and Shandong Sino
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By analyzing existing cross correlation between Gansu Jiu Steel and Shandong Sino Agri United, you can compare the effects of market volatilities on Gansu Jiu and Shandong Sino 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 Shandong Sino. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Shandong Sino.
Diversification Opportunities for Gansu Jiu and Shandong Sino
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gansu and Shandong is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Shandong Sino Agri United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sino Agri 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 Shandong Sino. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sino Agri has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Shandong Sino go up and down completely randomly.
Pair Corralation between Gansu Jiu and Shandong Sino
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 0.64 times more return on investment than Shandong Sino. However, Gansu Jiu Steel is 1.55 times less risky than Shandong Sino. It trades about -0.01 of its potential returns per unit of risk. Shandong Sino Agri United is currently generating about -0.03 per unit of risk. If you would invest 172.00 in Gansu Jiu Steel on October 25, 2024 and sell it today you would lose (26.00) from holding Gansu Jiu Steel or give up 15.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Shandong Sino Agri United
Performance |
| Timeline |
| Gansu Jiu Steel |
| Shandong Sino Agri |
Gansu Jiu and Shandong Sino Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Shandong Sino
The main advantage of trading using opposite Gansu Jiu and Shandong Sino positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Shandong Sino 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 Shandong Sino will offset losses from the drop in Shandong Sino's long position.| Gansu Jiu vs. Dynagreen Environmental Protection | Gansu Jiu vs. Universal Scientific Industrial | Gansu Jiu vs. Anyang Iron Steel | Gansu Jiu vs. Tongxing Environmental Protection |
| Shandong Sino vs. Lotus Health Group | Shandong Sino vs. Hangzhou Minsheng Healthcare | Shandong Sino vs. Goodwill E Health | Shandong Sino vs. Ningbo MedicalSystem Biotechnology |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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