Correlation Between Gansu Jiu and BCEG Environmental
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By analyzing existing cross correlation between Gansu Jiu Steel and BCEG Environmental Remediation, you can compare the effects of market volatilities on Gansu Jiu and BCEG Environmental 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 BCEG Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and BCEG Environmental.
Diversification Opportunities for Gansu Jiu and BCEG Environmental
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and BCEG is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and BCEG Environmental Remediation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCEG Environmental 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 BCEG Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCEG Environmental has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and BCEG Environmental go up and down completely randomly.
Pair Corralation between Gansu Jiu and BCEG Environmental
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the BCEG Environmental. But the stock apears to be less risky and, when comparing its historical volatility, Gansu Jiu Steel is 1.04 times less risky than BCEG Environmental. The stock trades about -0.28 of its potential returns per unit of risk. The BCEG Environmental Remediation is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 1,198 in BCEG Environmental Remediation on October 24, 2024 and sell it today you would lose (68.00) from holding BCEG Environmental Remediation or give up 5.68% 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. BCEG Environmental Remediation
Performance |
| Timeline |
| Gansu Jiu Steel |
| BCEG Environmental |
Gansu Jiu and BCEG Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and BCEG Environmental
The main advantage of trading using opposite Gansu Jiu and BCEG Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, BCEG Environmental 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 BCEG Environmental will offset losses from the drop in BCEG Environmental's long position.| Gansu Jiu vs. Sichuan Hebang Biotechnology | Gansu Jiu vs. Guilin Seamild Foods | Gansu Jiu vs. HaiXin Foods Co | Gansu Jiu vs. Zhongjing Food Co |
| BCEG Environmental vs. Beijing Kaiwen Education | BCEG Environmental vs. Suzhou Mingzhi Technology | BCEG Environmental vs. Zhejiang Publishing Media | BCEG Environmental vs. Qtone Education Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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