Correlation Between Gansu Jiu and State Grid
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By analyzing existing cross correlation between Gansu Jiu Steel and State Grid InformationCommunication, you can compare the effects of market volatilities on Gansu Jiu and State Grid 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 State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and State Grid.
Diversification Opportunities for Gansu Jiu and State Grid
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and State is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and State Grid InformationCommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Grid Informati 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 State Grid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Grid Informati has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and State Grid go up and down completely randomly.
Pair Corralation between Gansu Jiu and State Grid
Assuming the 90 days trading horizon Gansu Jiu is expected to generate 3.07 times less return on investment than State Grid. But when comparing it to its historical volatility, Gansu Jiu Steel is 1.39 times less risky than State Grid. It trades about 0.02 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,409 in State Grid InformationCommunication on September 12, 2024 and sell it today you would earn a total of 839.00 from holding State Grid InformationCommunication or generate 59.55% 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. State Grid InformationCommunic
Performance |
| Timeline |
| Gansu Jiu Steel |
| State Grid Informati |
Gansu Jiu and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and State Grid
The main advantage of trading using opposite Gansu Jiu and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, State Grid 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 State Grid will offset losses from the drop in State Grid'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 |
| State Grid vs. Gansu Jiu Steel | State Grid vs. Shandong Mining Machinery | State Grid vs. Aba Chemicals Corp | State Grid 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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