Correlation Between Gansu Jiu and TS Communications
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By analyzing existing cross correlation between Gansu Jiu Steel and TS Communications Co, you can compare the effects of market volatilities on Gansu Jiu and TS Communications 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 TS Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and TS Communications.
Diversification Opportunities for Gansu Jiu and TS Communications
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gansu and 300570 is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and TS Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TS Communications 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 TS Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TS Communications has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and TS Communications go up and down completely randomly.
Pair Corralation between Gansu Jiu and TS Communications
Assuming the 90 days trading horizon Gansu Jiu is expected to generate 10.34 times less return on investment than TS Communications. But when comparing it to its historical volatility, Gansu Jiu Steel is 2.6 times less risky than TS Communications. It trades about 0.02 of its potential returns per unit of risk. TS Communications Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,379 in TS Communications Co on September 12, 2024 and sell it today you would earn a total of 5,186 from holding TS Communications Co or generate 376.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. TS Communications Co
Performance |
| Timeline |
| Gansu Jiu Steel |
| TS Communications |
Gansu Jiu and TS Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and TS Communications
The main advantage of trading using opposite Gansu Jiu and TS Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, TS Communications 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 TS Communications will offset losses from the drop in TS Communications' 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 |
| TS Communications vs. Gansu Jiu Steel | TS Communications vs. Shandong Mining Machinery | TS Communications vs. Aba Chemicals Corp | TS Communications 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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