Correlation Between Gansu Jiu and Guangzhou Shangpin
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gansu Jiu Steel and Guangzhou Shangpin Home, you can compare the effects of market volatilities on Gansu Jiu and Guangzhou Shangpin 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 Guangzhou Shangpin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Guangzhou Shangpin.
Diversification Opportunities for Gansu Jiu and Guangzhou Shangpin
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Guangzhou is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Guangzhou Shangpin Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Shangpin Home 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 Guangzhou Shangpin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Shangpin Home has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Guangzhou Shangpin go up and down completely randomly.
Pair Corralation between Gansu Jiu and Guangzhou Shangpin
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 0.59 times more return on investment than Guangzhou Shangpin. However, Gansu Jiu Steel is 1.7 times less risky than Guangzhou Shangpin. It trades about 0.02 of its potential returns per unit of risk. Guangzhou Shangpin Home is currently generating about 0.0 per unit of risk. If you would invest 164.00 in Gansu Jiu Steel on September 12, 2024 and sell it today you would earn a total of 21.00 from holding Gansu Jiu Steel or generate 12.8% 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. Guangzhou Shangpin Home
Performance |
| Timeline |
| Gansu Jiu Steel |
| Guangzhou Shangpin Home |
Gansu Jiu and Guangzhou Shangpin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Guangzhou Shangpin
The main advantage of trading using opposite Gansu Jiu and Guangzhou Shangpin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Guangzhou Shangpin 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 Guangzhou Shangpin will offset losses from the drop in Guangzhou Shangpin'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 |
| Guangzhou Shangpin vs. Lutian Machinery Co | Guangzhou Shangpin vs. PetroChina Co Ltd | Guangzhou Shangpin vs. Bank of China | Guangzhou Shangpin vs. Gansu Jiu Steel |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |