Correlation Between Gansu Jiu and Xinjiang Tianrun
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By analyzing existing cross correlation between Gansu Jiu Steel and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Gansu Jiu and Xinjiang Tianrun 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 Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Xinjiang Tianrun.
Diversification Opportunities for Gansu Jiu and Xinjiang Tianrun
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gansu and Xinjiang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Gansu Jiu and Xinjiang Tianrun
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 1.08 times more return on investment than Xinjiang Tianrun. However, Gansu Jiu is 1.08 times more volatile than Xinjiang Tianrun Dairy. It trades about 0.02 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.04 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Gansu Jiu Steel |
| Xinjiang Tianrun Dairy |
Gansu Jiu and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Xinjiang Tianrun
The main advantage of trading using opposite Gansu Jiu and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun'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 |
| Xinjiang Tianrun vs. Jiangxi JDL Environmental | Xinjiang Tianrun vs. Jiugui Liquor Co | Xinjiang Tianrun vs. Guangzhou Tinci Materials | Xinjiang Tianrun vs. Tongxing Environmental Protection |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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