Correlation Between Gansu Jiu and Uroica Mining
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By analyzing existing cross correlation between Gansu Jiu Steel and Uroica Mining Safety, you can compare the effects of market volatilities on Gansu Jiu and Uroica Mining 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 Uroica Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Uroica Mining.
Diversification Opportunities for Gansu Jiu and Uroica Mining
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Uroica is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Uroica Mining Safety in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uroica Mining Safety 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 Uroica Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uroica Mining Safety has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Uroica Mining go up and down completely randomly.
Pair Corralation between Gansu Jiu and Uroica Mining
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Uroica Mining. But the stock apears to be less risky and, when comparing its historical volatility, Gansu Jiu Steel is 1.41 times less risky than Uroica Mining. The stock trades about -0.49 of its potential returns per unit of risk. The Uroica Mining Safety is currently generating about -0.34 of returns per unit of risk over similar time horizon. If you would invest 687.00 in Uroica Mining Safety on October 9, 2024 and sell it today you would lose (134.00) from holding Uroica Mining Safety or give up 19.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Uroica Mining Safety
Performance |
| Timeline |
| Gansu Jiu Steel |
| Uroica Mining Safety |
Gansu Jiu and Uroica Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Uroica Mining
The main advantage of trading using opposite Gansu Jiu and Uroica Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Uroica Mining 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 Uroica Mining will offset losses from the drop in Uroica Mining's long position.| Gansu Jiu vs. Zijin Mining Group | Gansu Jiu vs. Wanhua Chemical Group | Gansu Jiu vs. Baoshan Iron Steel | Gansu Jiu vs. Shandong Gold Mining |
| Uroica Mining vs. Tianshui Huatian Technology | Uroica Mining vs. Kuang Chi Technologies | Uroica Mining vs. Guangdong Qunxing Toys | Uroica Mining vs. Sharetronic Data Technology |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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