Correlation Between Gansu Jiu and Jinyu Bio
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By analyzing existing cross correlation between Gansu Jiu Steel and Jinyu Bio Technology Co, you can compare the effects of market volatilities on Gansu Jiu and Jinyu Bio 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 Jinyu Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Jinyu Bio.
Diversification Opportunities for Gansu Jiu and Jinyu Bio
Very weak diversification
The 3 months correlation between Gansu and Jinyu is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Jinyu Bio Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinyu Bio Technology 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 Jinyu Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinyu Bio Technology has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Jinyu Bio go up and down completely randomly.
Pair Corralation between Gansu Jiu and Jinyu Bio
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Jinyu Bio. But the stock apears to be less risky and, when comparing its historical volatility, Gansu Jiu Steel is 1.32 times less risky than Jinyu Bio. The stock trades about -0.49 of its potential returns per unit of risk. The Jinyu Bio Technology Co is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 699.00 in Jinyu Bio Technology Co on October 9, 2024 and sell it today you would lose (39.00) from holding Jinyu Bio Technology Co or give up 5.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Jinyu Bio Technology Co
Performance |
| Timeline |
| Gansu Jiu Steel |
| Jinyu Bio Technology |
Gansu Jiu and Jinyu Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Jinyu Bio
The main advantage of trading using opposite Gansu Jiu and Jinyu Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Jinyu Bio 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 Jinyu Bio will offset losses from the drop in Jinyu Bio's 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 |
| Jinyu Bio vs. Northking Information Technology | Jinyu Bio vs. Montage Technology Co | Jinyu Bio vs. Tibet Huayu Mining | Jinyu Bio vs. Tianjin Silvery Dragon |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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