Correlation Between Gansu Jiu and Chaozhou Three
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By analyzing existing cross correlation between Gansu Jiu Steel and Chaozhou Three circle Group, you can compare the effects of market volatilities on Gansu Jiu and Chaozhou Three 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 Chaozhou Three. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Chaozhou Three.
Diversification Opportunities for Gansu Jiu and Chaozhou Three
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Chaozhou is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Chaozhou Three circle Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chaozhou Three circle 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 Chaozhou Three. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chaozhou Three circle has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Chaozhou Three go up and down completely randomly.
Pair Corralation between Gansu Jiu and Chaozhou Three
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 1.24 times more return on investment than Chaozhou Three. However, Gansu Jiu is 1.24 times more volatile than Chaozhou Three circle Group. It trades about 0.15 of its potential returns per unit of risk. Chaozhou Three circle Group is currently generating about 0.03 per unit of risk. If you would invest 179.00 in Gansu Jiu Steel on September 13, 2024 and sell it today you would earn a total of 14.00 from holding Gansu Jiu Steel or generate 7.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Chaozhou Three circle Group
Performance |
| Timeline |
| Gansu Jiu Steel |
| Chaozhou Three circle |
Gansu Jiu and Chaozhou Three Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Chaozhou Three
The main advantage of trading using opposite Gansu Jiu and Chaozhou Three positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Chaozhou Three 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 Chaozhou Three will offset losses from the drop in Chaozhou Three'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 |
| Chaozhou Three vs. Gansu Jiu Steel | Chaozhou Three vs. Shandong Mining Machinery | Chaozhou Three vs. Aba Chemicals Corp | Chaozhou Three 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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