Correlation Between Gansu Jiu and China Sports
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By analyzing existing cross correlation between Gansu Jiu Steel and China Sports Industry, you can compare the effects of market volatilities on Gansu Jiu and China Sports 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 China Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and China Sports.
Diversification Opportunities for Gansu Jiu and China Sports
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and China is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and China Sports Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Sports Industry 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 China Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Sports Industry has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and China Sports go up and down completely randomly.
Pair Corralation between Gansu Jiu and China Sports
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 1.16 times more return on investment than China Sports. However, Gansu Jiu is 1.16 times more volatile than China Sports Industry. It trades about 0.06 of its potential returns per unit of risk. China Sports Industry is currently generating about -0.02 per unit of risk. If you would invest 121.00 in Gansu Jiu Steel on November 28, 2024 and sell it today you would earn a total of 29.00 from holding Gansu Jiu Steel or generate 23.97% 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. China Sports Industry
Performance |
| Timeline |
| Gansu Jiu Steel |
| China Sports Industry |
Gansu Jiu and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and China Sports
The main advantage of trading using opposite Gansu Jiu and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, China Sports 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 China Sports will offset losses from the drop in China Sports' long position.| Gansu Jiu vs. Zijin Mining Group | Gansu Jiu vs. Wanhua Chemical Group | Gansu Jiu vs. Baoshan Iron Steel | Gansu Jiu vs. Shandong Gold Mining |
| China Sports vs. Gan Yuan Foods | China Sports vs. Jiaozuo Wanfang Aluminum | China Sports vs. Sichuan Fulin Transportation | China Sports vs. Anji Foodstuff Co |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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