Correlation Between Gansu Jiu and Shanghai Pudong
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By analyzing existing cross correlation between Gansu Jiu Steel and Shanghai Pudong Development, you can compare the effects of market volatilities on Gansu Jiu and Shanghai Pudong 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 Shanghai Pudong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Shanghai Pudong.
Diversification Opportunities for Gansu Jiu and Shanghai Pudong
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Shanghai is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Shanghai Pudong Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Pudong Deve 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 Shanghai Pudong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Pudong Deve has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Shanghai Pudong go up and down completely randomly.
Pair Corralation between Gansu Jiu and Shanghai Pudong
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Shanghai Pudong. In addition to that, Gansu Jiu is 2.21 times more volatile than Shanghai Pudong Development. It trades about -0.24 of its total potential returns per unit of risk. Shanghai Pudong Development is currently generating about -0.1 per unit of volatility. If you would invest 984.00 in Shanghai Pudong Development on September 1, 2024 and sell it today you would lose (38.00) from holding Shanghai Pudong Development or give up 3.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Shanghai Pudong Development
Performance |
| Timeline |
| Gansu Jiu Steel |
| Shanghai Pudong Deve |
Gansu Jiu and Shanghai Pudong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Shanghai Pudong
The main advantage of trading using opposite Gansu Jiu and Shanghai Pudong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Shanghai Pudong 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 Shanghai Pudong will offset losses from the drop in Shanghai Pudong'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 |
| Shanghai Pudong vs. Dymatic Chemicals | Shanghai Pudong vs. Air China Ltd | Shanghai Pudong vs. Shenzhen Centralcon Investment | Shanghai Pudong vs. Ningxia Younglight Chemicals |
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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