Correlation Between Gansu Jiu and Hengerda New
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By analyzing existing cross correlation between Gansu Jiu Steel and Hengerda New Materials, you can compare the effects of market volatilities on Gansu Jiu and Hengerda New 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 Hengerda New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Hengerda New.
Diversification Opportunities for Gansu Jiu and Hengerda New
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Hengerda is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Hengerda New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengerda New Materials 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 Hengerda New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengerda New Materials has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Hengerda New go up and down completely randomly.
Pair Corralation between Gansu Jiu and Hengerda New
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Hengerda New. But the stock apears to be less risky and, when comparing its historical volatility, Gansu Jiu Steel is 1.3 times less risky than Hengerda New. The stock trades about -0.49 of its potential returns per unit of risk. The Hengerda New Materials is currently generating about -0.32 of returns per unit of risk over similar time horizon. If you would invest 2,982 in Hengerda New Materials on October 9, 2024 and sell it today you would lose (510.00) from holding Hengerda New Materials or give up 17.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Hengerda New Materials
Performance |
| Timeline |
| Gansu Jiu Steel |
| Hengerda New Materials |
Gansu Jiu and Hengerda New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Hengerda New
The main advantage of trading using opposite Gansu Jiu and Hengerda New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Hengerda New 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 Hengerda New will offset losses from the drop in Hengerda New'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 |
| Hengerda New vs. Henan Shuanghui Investment | Hengerda New vs. Luyin Investment Group | Hengerda New vs. Shenzhen Centralcon Investment | Hengerda New vs. Xiamen Insight Investment |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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