Correlation Between Gansu Jiu and Hangzhou Gisway
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By analyzing existing cross correlation between Gansu Jiu Steel and Hangzhou Gisway Information, you can compare the effects of market volatilities on Gansu Jiu and Hangzhou Gisway 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 Hangzhou Gisway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Hangzhou Gisway.
Diversification Opportunities for Gansu Jiu and Hangzhou Gisway
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Hangzhou is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Hangzhou Gisway Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gisway Info 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 Hangzhou Gisway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gisway Info has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Hangzhou Gisway go up and down completely randomly.
Pair Corralation between Gansu Jiu and Hangzhou Gisway
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 0.63 times more return on investment than Hangzhou Gisway. However, Gansu Jiu Steel is 1.58 times less risky than Hangzhou Gisway. It trades about 0.03 of its potential returns per unit of risk. Hangzhou Gisway Information is currently generating about -0.02 per unit of risk. If you would invest 164.00 in Gansu Jiu Steel on September 12, 2024 and sell it today you would earn a total of 21.00 from holding Gansu Jiu Steel or generate 12.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Hangzhou Gisway Information
Performance |
| Timeline |
| Gansu Jiu Steel |
| Hangzhou Gisway Info |
Gansu Jiu and Hangzhou Gisway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Hangzhou Gisway
The main advantage of trading using opposite Gansu Jiu and Hangzhou Gisway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Hangzhou Gisway 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 Hangzhou Gisway will offset losses from the drop in Hangzhou Gisway'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 |
| Hangzhou Gisway vs. Gansu Jiu Steel | Hangzhou Gisway vs. Shandong Mining Machinery | Hangzhou Gisway vs. Aba Chemicals Corp | Hangzhou Gisway vs. BlueFocus Communication 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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