Correlation Between Gansu Jiu and Fujian Nanwang
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By analyzing existing cross correlation between Gansu Jiu Steel and Fujian Nanwang Environment, you can compare the effects of market volatilities on Gansu Jiu and Fujian Nanwang 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 Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Fujian Nanwang.
Diversification Opportunities for Gansu Jiu and Fujian Nanwang
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and Fujian is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir 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 Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Gansu Jiu and Fujian Nanwang
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Fujian Nanwang. In addition to that, Gansu Jiu is 1.94 times more volatile than Fujian Nanwang Environment. It trades about -0.24 of its total potential returns per unit of risk. Fujian Nanwang Environment is currently generating about 0.12 per unit of volatility. If you would invest 1,192 in Fujian Nanwang Environment on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Fujian Nanwang Environment or generate 4.19% 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. Fujian Nanwang Environment
Performance |
| Timeline |
| Gansu Jiu Steel |
| Fujian Nanwang Envir |
Gansu Jiu and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Fujian Nanwang
The main advantage of trading using opposite Gansu Jiu and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang's long position.| Gansu Jiu vs. Jinhe Biotechnology Co | Gansu Jiu vs. Southern PublishingMedia Co | Gansu Jiu vs. Guangdong Marubi Biotechnology | Gansu Jiu vs. Time Publishing and |
| Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Wanhua Chemical Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang vs. Shandong Gold Mining |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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