Correlation Between Gansu Jiu and Hang Xiao
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By analyzing existing cross correlation between Gansu Jiu Steel and Hang Xiao Steel, you can compare the effects of market volatilities on Gansu Jiu and Hang Xiao 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 Hang Xiao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Hang Xiao.
Diversification Opportunities for Gansu Jiu and Hang Xiao
Almost no diversification
The 3 months correlation between Gansu and Hang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Hang Xiao Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hang Xiao Steel 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 Hang Xiao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Xiao Steel has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Hang Xiao go up and down completely randomly.
Pair Corralation between Gansu Jiu and Hang Xiao
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Hang Xiao. In addition to that, Gansu Jiu is 1.65 times more volatile than Hang Xiao Steel. It trades about -0.24 of its total potential returns per unit of risk. Hang Xiao Steel is currently generating about -0.07 per unit of volatility. If you would invest 288.00 in Hang Xiao Steel on September 1, 2024 and sell it today you would lose (10.00) from holding Hang Xiao Steel or give up 3.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Hang Xiao Steel
Performance |
| Timeline |
| Gansu Jiu Steel |
| Hang Xiao Steel |
Gansu Jiu and Hang Xiao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Hang Xiao
The main advantage of trading using opposite Gansu Jiu and Hang Xiao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Hang Xiao 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 Hang Xiao will offset losses from the drop in Hang Xiao's long position.| Gansu Jiu vs. Jinhe Biotechnology Co | Gansu Jiu vs. Southern PublishingMedia Co | Gansu Jiu vs. Guangdong Marubi Biotechnology | Gansu Jiu vs. Time Publishing and |
| Hang Xiao vs. Western Metal Materials | Hang Xiao vs. Heilongjiang Transport Development | Hang Xiao vs. Dezhan HealthCare Co | Hang Xiao vs. Shanghai Rongtai Health |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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