Correlation Between Gansu Jiu and Jiangxi Naipu
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By analyzing existing cross correlation between Gansu Jiu Steel and Jiangxi Naipu Mining, you can compare the effects of market volatilities on Gansu Jiu and Jiangxi Naipu 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 Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Jiangxi Naipu.
Diversification Opportunities for Gansu Jiu and Jiangxi Naipu
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gansu and Jiangxi is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Jiangxi Naipu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Naipu Mining 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 Jiangxi Naipu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Naipu Mining has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between Gansu Jiu and Jiangxi Naipu
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Jiangxi Naipu. In addition to that, Gansu Jiu is 1.49 times more volatile than Jiangxi Naipu Mining. It trades about -0.49 of its total potential returns per unit of risk. Jiangxi Naipu Mining is currently generating about -0.41 per unit of volatility. If you would invest 2,952 in Jiangxi Naipu Mining on October 9, 2024 and sell it today you would lose (332.00) from holding Jiangxi Naipu Mining or give up 11.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Jiangxi Naipu Mining
Performance |
| Timeline |
| Gansu Jiu Steel |
| Jiangxi Naipu Mining |
Gansu Jiu and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Jiangxi Naipu
The main advantage of trading using opposite Gansu Jiu and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Jiangxi Naipu 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 Jiangxi Naipu will offset losses from the drop in Jiangxi Naipu'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 |
| Jiangxi Naipu vs. BYD Co Ltd | Jiangxi Naipu vs. China Mobile Limited | Jiangxi Naipu vs. Agricultural Bank of | Jiangxi Naipu vs. Industrial and Commercial |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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