Correlation Between Gansu Jiu and Hubei Jumpcan
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By analyzing existing cross correlation between Gansu Jiu Steel and Hubei Jumpcan Pharmaceutical, you can compare the effects of market volatilities on Gansu Jiu and Hubei Jumpcan 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 Hubei Jumpcan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Hubei Jumpcan.
Diversification Opportunities for Gansu Jiu and Hubei Jumpcan
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gansu and Hubei is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Hubei Jumpcan Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Jumpcan Pharma 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 Hubei Jumpcan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Jumpcan Pharma has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Hubei Jumpcan go up and down completely randomly.
Pair Corralation between Gansu Jiu and Hubei Jumpcan
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Hubei Jumpcan. In addition to that, Gansu Jiu is 1.22 times more volatile than Hubei Jumpcan Pharmaceutical. It trades about -0.49 of its total potential returns per unit of risk. Hubei Jumpcan Pharmaceutical is currently generating about -0.07 per unit of volatility. If you would invest 2,972 in Hubei Jumpcan Pharmaceutical on October 9, 2024 and sell it today you would lose (81.00) from holding Hubei Jumpcan Pharmaceutical or give up 2.73% 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. Hubei Jumpcan Pharmaceutical
Performance |
| Timeline |
| Gansu Jiu Steel |
| Hubei Jumpcan Pharma |
Gansu Jiu and Hubei Jumpcan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Hubei Jumpcan
The main advantage of trading using opposite Gansu Jiu and Hubei Jumpcan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Hubei Jumpcan 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 Hubei Jumpcan will offset losses from the drop in Hubei Jumpcan'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 |
| Hubei Jumpcan vs. Eastern Communications Co | Hubei Jumpcan vs. Fiberhome Telecommunication Technologies | Hubei Jumpcan vs. Guangzhou Haige Communications | Hubei Jumpcan vs. Quectel Wireless Solutions |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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