Correlation Between Gansu Jiu and Iat Automobile
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By analyzing existing cross correlation between Gansu Jiu Steel and Iat Automobile Technology, you can compare the effects of market volatilities on Gansu Jiu and Iat Automobile 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 Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Iat Automobile.
Diversification Opportunities for Gansu Jiu and Iat Automobile
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and Iat is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Iat Automobile Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iat Automobile Technology 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 Iat Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iat Automobile Technology has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Iat Automobile go up and down completely randomly.
Pair Corralation between Gansu Jiu and Iat Automobile
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 0.69 times more return on investment than Iat Automobile. However, Gansu Jiu Steel is 1.44 times less risky than Iat Automobile. It trades about 0.15 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.07 per unit of risk. If you would invest 120.00 in Gansu Jiu Steel on September 13, 2024 and sell it today you would earn a total of 73.00 from holding Gansu Jiu Steel or generate 60.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Iat Automobile Technology
Performance |
| Timeline |
| Gansu Jiu Steel |
| Iat Automobile Technology |
Gansu Jiu and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Iat Automobile
The main advantage of trading using opposite Gansu Jiu and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Iat Automobile 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 Iat Automobile will offset losses from the drop in Iat Automobile'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 |
| Iat Automobile vs. Everdisplay Optronics Shanghai | Iat Automobile vs. Healthcare Co | Iat Automobile vs. Lotus Health Group | Iat Automobile vs. Jinling Hotel Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
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