Correlation Between Gansu Jiu and Wintao Communications
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By analyzing existing cross correlation between Gansu Jiu Steel and Wintao Communications Co, you can compare the effects of market volatilities on Gansu Jiu and Wintao Communications 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 Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Wintao Communications.
Diversification Opportunities for Gansu Jiu and Wintao Communications
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gansu and Wintao is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications 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 Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Wintao Communications go up and down completely randomly.
Pair Corralation between Gansu Jiu and Wintao Communications
Assuming the 90 days trading horizon Gansu Jiu is expected to generate 34.23 times less return on investment than Wintao Communications. But when comparing it to its historical volatility, Gansu Jiu Steel is 3.31 times less risky than Wintao Communications. It trades about 0.03 of its potential returns per unit of risk. Wintao Communications Co is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2,265 in Wintao Communications Co on December 1, 2024 and sell it today you would earn a total of 806.00 from holding Wintao Communications Co or generate 35.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Wintao Communications Co
Performance |
| Timeline |
| Gansu Jiu Steel |
| Wintao Communications |
Gansu Jiu and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Wintao Communications
The main advantage of trading using opposite Gansu Jiu and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' long position.| Gansu Jiu vs. China Sports Industry | Gansu Jiu vs. Lander Sports Development | Gansu Jiu vs. Jiangsu Jinling Sports | Gansu Jiu vs. Suzhou Xingye Material |
| Wintao Communications vs. Bengang Steel Plates | Wintao Communications vs. Zhejiang Yongjin Metal | Wintao Communications vs. Aluminum Corp of | Wintao Communications vs. Shenzhen Urban Transport |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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