Correlation Between Gansu Jiu and Sinomach General
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By analyzing existing cross correlation between Gansu Jiu Steel and Sinomach General Machinery, you can compare the effects of market volatilities on Gansu Jiu and Sinomach General 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 General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Sinomach General.
Diversification Opportunities for Gansu Jiu and Sinomach General
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Sinomach is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Sinomach General Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach General Mac 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 General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach General Mac has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Sinomach General go up and down completely randomly.
Pair Corralation between Gansu Jiu and Sinomach General
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Sinomach General. But the stock apears to be less risky and, when comparing its historical volatility, Gansu Jiu Steel is 1.11 times less risky than Sinomach General. The stock trades about -0.25 of its potential returns per unit of risk. The Sinomach General Machinery is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,525 in Sinomach General Machinery on October 23, 2024 and sell it today you would lose (6.00) from holding Sinomach General Machinery or give up 0.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Sinomach General Machinery
Performance |
| Timeline |
| Gansu Jiu Steel |
| Sinomach General Mac |
Gansu Jiu and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Sinomach General
The main advantage of trading using opposite Gansu Jiu and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Sinomach General 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 General will offset losses from the drop in Sinomach General's long position.| Gansu Jiu vs. GRINM Semiconductor Materials | Gansu Jiu vs. TianJin 712 Communication | Gansu Jiu vs. Bank of Communications | Gansu Jiu vs. China Sports Industry |
| Sinomach General vs. Hainan Mining Co | Sinomach General vs. Zijin Mining Group | Sinomach General vs. Zhengzhou Coal Mining | Sinomach General vs. Shenyang Huitian Thermal |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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