Correlation Between Gansu Jiu and Sinomach Automobile
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By analyzing existing cross correlation between Gansu Jiu Steel and Sinomach Automobile Co, you can compare the effects of market volatilities on Gansu Jiu and Sinomach Automobile 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 Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Sinomach Automobile.
Diversification Opportunities for Gansu Jiu and Sinomach Automobile
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Sinomach is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile 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 Sinomach Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach Automobile has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Gansu Jiu and Sinomach Automobile
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Sinomach Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Gansu Jiu Steel is 1.16 times less risky than Sinomach Automobile. The stock trades about -0.3 of its potential returns per unit of risk. The Sinomach Automobile Co is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 669.00 in Sinomach Automobile Co on October 25, 2024 and sell it today you would lose (42.00) from holding Sinomach Automobile Co or give up 6.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Sinomach Automobile Co
Performance |
| Timeline |
| Gansu Jiu Steel |
| Sinomach Automobile |
Gansu Jiu and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Sinomach Automobile
The main advantage of trading using opposite Gansu Jiu and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Sinomach Automobile 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 Sinomach Automobile will offset losses from the drop in Sinomach Automobile's long position.| Gansu Jiu vs. Dynagreen Environmental Protection | Gansu Jiu vs. Universal Scientific Industrial | Gansu Jiu vs. Anyang Iron Steel | Gansu Jiu vs. Tongxing Environmental Protection |
| Sinomach Automobile vs. PetroChina Co Ltd | Sinomach Automobile vs. Gansu Jiu Steel | Sinomach Automobile vs. Ming Yang Smart | Sinomach Automobile vs. Aba Chemicals Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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