Correlation Between Gansu Jiu and Ziel Home
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By analyzing existing cross correlation between Gansu Jiu Steel and Ziel Home Furnishing, you can compare the effects of market volatilities on Gansu Jiu and Ziel Home 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 Ziel Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Ziel Home.
Diversification Opportunities for Gansu Jiu and Ziel Home
Weak diversification
The 3 months correlation between Gansu and Ziel is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Ziel Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ziel Home Furnishing 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 Ziel Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ziel Home Furnishing has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Ziel Home go up and down completely randomly.
Pair Corralation between Gansu Jiu and Ziel Home
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Ziel Home. But the stock apears to be less risky and, when comparing its historical volatility, Gansu Jiu Steel is 1.23 times less risky than Ziel Home. The stock trades about -0.07 of its potential returns per unit of risk. The Ziel Home Furnishing is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,811 in Ziel Home Furnishing on November 4, 2024 and sell it today you would earn a total of 160.00 from holding Ziel Home Furnishing or generate 8.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Ziel Home Furnishing
Performance |
| Timeline |
| Gansu Jiu Steel |
| Ziel Home Furnishing |
Gansu Jiu and Ziel Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Ziel Home
The main advantage of trading using opposite Gansu Jiu and Ziel Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Ziel Home 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 Ziel Home will offset losses from the drop in Ziel Home's long position.| Gansu Jiu vs. Eyebright Medical Technology | Gansu Jiu vs. FSPG Hi Tech Co | Gansu Jiu vs. Hengkang Medical Group | Gansu Jiu vs. Maxvision Technology Corp |
| Ziel Home vs. Lander Sports Development | Ziel Home vs. Jinxiandai Information Industry | Ziel Home vs. Biwin Storage Technology | Ziel Home vs. Guangdong TianYiMa Information |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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