Correlation Between Gansu Jiu and YLZ Information
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By analyzing existing cross correlation between Gansu Jiu Steel and YLZ Information Tech, you can compare the effects of market volatilities on Gansu Jiu and YLZ Information 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 YLZ Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and YLZ Information.
Diversification Opportunities for Gansu Jiu and YLZ Information
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and YLZ is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and YLZ Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YLZ Information Tech 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 YLZ Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YLZ Information Tech has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and YLZ Information go up and down completely randomly.
Pair Corralation between Gansu Jiu and YLZ Information
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 0.51 times more return on investment than YLZ Information. However, Gansu Jiu Steel is 1.96 times less risky than YLZ Information. It trades about 0.04 of its potential returns per unit of risk. YLZ Information Tech is currently generating about -0.03 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 31.00 from holding Gansu Jiu Steel or generate 20.13% 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. YLZ Information Tech
Performance |
| Timeline |
| Gansu Jiu Steel |
| YLZ Information Tech |
Gansu Jiu and YLZ Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and YLZ Information
The main advantage of trading using opposite Gansu Jiu and YLZ Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, YLZ Information 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 YLZ Information will offset losses from the drop in YLZ Information's long position.| Gansu Jiu vs. Zijin Mining Group | Gansu Jiu vs. Wanhua Chemical Group | Gansu Jiu vs. Baoshan Iron Steel | Gansu Jiu vs. Rongsheng Petrochemical Co |
| YLZ Information vs. Gansu Jiu Steel | YLZ Information vs. Shandong Mining Machinery | YLZ Information vs. Aba Chemicals Corp | YLZ Information 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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