Correlation Between Gansu Jiu and Sharetronic Data
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By analyzing existing cross correlation between Gansu Jiu Steel and Sharetronic Data Technology, you can compare the effects of market volatilities on Gansu Jiu and Sharetronic Data 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 Sharetronic Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Sharetronic Data.
Diversification Opportunities for Gansu Jiu and Sharetronic Data
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and Sharetronic is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Sharetronic Data Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharetronic Data Tec 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 Sharetronic Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharetronic Data Tec has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Sharetronic Data go up and down completely randomly.
Pair Corralation between Gansu Jiu and Sharetronic Data
Assuming the 90 days trading horizon Gansu Jiu is expected to generate 19.4 times less return on investment than Sharetronic Data. But when comparing it to its historical volatility, Gansu Jiu Steel is 1.9 times less risky than Sharetronic Data. It trades about 0.01 of its potential returns per unit of risk. Sharetronic Data Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 9,236 in Sharetronic Data Technology on September 12, 2024 and sell it today you would earn a total of 941.00 from holding Sharetronic Data Technology or generate 10.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Sharetronic Data Technology
Performance |
| Timeline |
| Gansu Jiu Steel |
| Sharetronic Data Tec |
Gansu Jiu and Sharetronic Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Sharetronic Data
The main advantage of trading using opposite Gansu Jiu and Sharetronic Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Sharetronic Data 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 Sharetronic Data will offset losses from the drop in Sharetronic Data'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 |
| Sharetronic Data vs. Lutian Machinery Co | Sharetronic Data vs. PetroChina Co Ltd | Sharetronic Data vs. Bank of China | Sharetronic Data 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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