Correlation Between Gansu Jiu and Chongqing Brewery
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By analyzing existing cross correlation between Gansu Jiu Steel and Chongqing Brewery Co, you can compare the effects of market volatilities on Gansu Jiu and Chongqing Brewery 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 Chongqing Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Chongqing Brewery.
Diversification Opportunities for Gansu Jiu and Chongqing Brewery
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Chongqing is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Chongqing Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Brewery 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 Chongqing Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Brewery has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Chongqing Brewery go up and down completely randomly.
Pair Corralation between Gansu Jiu and Chongqing Brewery
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 0.99 times more return on investment than Chongqing Brewery. However, Gansu Jiu Steel is 1.01 times less risky than Chongqing Brewery. It trades about 0.02 of its potential returns per unit of risk. Chongqing Brewery Co is currently generating about 0.0 per unit of risk. If you would invest 157.00 in Gansu Jiu Steel on September 2, 2024 and sell it today you would earn a total of 9.00 from holding Gansu Jiu Steel or generate 5.73% 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. Chongqing Brewery Co
Performance |
| Timeline |
| Gansu Jiu Steel |
| Chongqing Brewery |
Gansu Jiu and Chongqing Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Chongqing Brewery
The main advantage of trading using opposite Gansu Jiu and Chongqing Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Chongqing Brewery 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 Chongqing Brewery will offset losses from the drop in Chongqing Brewery's long position.| Gansu Jiu vs. Western Metal Materials | Gansu Jiu vs. Chengtun Mining Group | Gansu Jiu vs. Uroica Mining Safety | Gansu Jiu vs. Beijing HuaYuanYiTong Thermal |
| Chongqing Brewery vs. BeiGene | Chongqing Brewery vs. Kweichow Moutai Co | Chongqing Brewery vs. Beijing Roborock Technology | Chongqing Brewery vs. G bits Network Technology |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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