Correlation Between Gansu Jiu and BlueFocus Communication
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By analyzing existing cross correlation between Gansu Jiu Steel and BlueFocus Communication Group, you can compare the effects of market volatilities on Gansu Jiu and BlueFocus Communication 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 BlueFocus Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and BlueFocus Communication.
Diversification Opportunities for Gansu Jiu and BlueFocus Communication
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and BlueFocus is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and BlueFocus Communication Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlueFocus Communication 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 BlueFocus Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlueFocus Communication has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and BlueFocus Communication go up and down completely randomly.
Pair Corralation between Gansu Jiu and BlueFocus Communication
Assuming the 90 days trading horizon Gansu Jiu is expected to generate 2.34 times less return on investment than BlueFocus Communication. But when comparing it to its historical volatility, Gansu Jiu Steel is 1.24 times less risky than BlueFocus Communication. It trades about 0.14 of its potential returns per unit of risk. BlueFocus Communication Group is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 757.00 in BlueFocus Communication Group on August 24, 2024 and sell it today you would earn a total of 317.00 from holding BlueFocus Communication Group or generate 41.88% 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. BlueFocus Communication Group
Performance |
| Timeline |
| Gansu Jiu Steel |
| BlueFocus Communication |
Gansu Jiu and BlueFocus Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and BlueFocus Communication
The main advantage of trading using opposite Gansu Jiu and BlueFocus Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, BlueFocus Communication 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 BlueFocus Communication will offset losses from the drop in BlueFocus Communication'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 |
| BlueFocus Communication vs. Kweichow Moutai Co | BlueFocus Communication vs. Contemporary Amperex Technology | BlueFocus Communication vs. G bits Network Technology | BlueFocus Communication vs. BYD Co Ltd |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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