Correlation Between Gansu Jiu and Zhejiang Yayi
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By analyzing existing cross correlation between Gansu Jiu Steel and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Gansu Jiu and Zhejiang Yayi 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 Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Zhejiang Yayi.
Diversification Opportunities for Gansu Jiu and Zhejiang Yayi
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and Zhejiang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Zhejiang Yayi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yayi Metal 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 Zhejiang Yayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yayi Metal has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Gansu Jiu and Zhejiang Yayi
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 0.62 times more return on investment than Zhejiang Yayi. However, Gansu Jiu Steel is 1.62 times less risky than Zhejiang Yayi. It trades about 0.04 of its potential returns per unit of risk. Zhejiang Yayi Metal is currently generating about 0.0 per unit of risk. If you would invest 154.00 in Gansu Jiu Steel on September 12, 2024 and sell it today you would earn a total of 31.00 from holding Gansu Jiu Steel or generate 20.13% 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. Zhejiang Yayi Metal
Performance |
| Timeline |
| Gansu Jiu Steel |
| Zhejiang Yayi Metal |
Gansu Jiu and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Zhejiang Yayi
The main advantage of trading using opposite Gansu Jiu and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Zhejiang Yayi 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 Zhejiang Yayi will offset losses from the drop in Zhejiang Yayi'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 |
| Zhejiang Yayi vs. Lutian Machinery Co | Zhejiang Yayi vs. PetroChina Co Ltd | Zhejiang Yayi vs. Bank of China | Zhejiang Yayi 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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