Correlation Between Gansu Jiu and Changchun Faway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gansu Jiu Steel and Changchun Faway Automobile, you can compare the effects of market volatilities on Gansu Jiu and Changchun Faway 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 Changchun Faway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Changchun Faway.
Diversification Opportunities for Gansu Jiu and Changchun Faway
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and Changchun is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Changchun Faway Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Faway Auto 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 Changchun Faway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Faway Auto has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Changchun Faway go up and down completely randomly.
Pair Corralation between Gansu Jiu and Changchun Faway
Assuming the 90 days trading horizon Gansu Jiu is expected to generate 3.57 times less return on investment than Changchun Faway. But when comparing it to its historical volatility, Gansu Jiu Steel is 1.1 times less risky than Changchun Faway. It trades about 0.01 of its potential returns per unit of risk. Changchun Faway Automobile is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 859.00 in Changchun Faway Automobile on September 3, 2024 and sell it today you would earn a total of 84.00 from holding Changchun Faway Automobile or generate 9.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Changchun Faway Automobile
Performance |
| Timeline |
| Gansu Jiu Steel |
| Changchun Faway Auto |
Gansu Jiu and Changchun Faway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Changchun Faway
The main advantage of trading using opposite Gansu Jiu and Changchun Faway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Changchun Faway 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 Changchun Faway will offset losses from the drop in Changchun Faway's long position.| Gansu Jiu vs. Cangzhou Mingzhu Plastic | Gansu Jiu vs. Eastern Communications Co | Gansu Jiu vs. Western Metal Materials | Gansu Jiu vs. Ningbo Tip Rubber |
| Changchun Faway vs. PetroChina Co Ltd | Changchun Faway vs. China Mobile Limited | Changchun Faway vs. Industrial and Commercial | Changchun Faway vs. China Life Insurance |
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.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |