Correlation Between Gansu Jiu and Shaanxi Broadcast
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By analyzing existing cross correlation between Gansu Jiu Steel and Shaanxi Broadcast TV, you can compare the effects of market volatilities on Gansu Jiu and Shaanxi Broadcast 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 Shaanxi Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Shaanxi Broadcast.
Diversification Opportunities for Gansu Jiu and Shaanxi Broadcast
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gansu and Shaanxi is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Shaanxi Broadcast TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Broadcast 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 Shaanxi Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Broadcast has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Shaanxi Broadcast go up and down completely randomly.
Pair Corralation between Gansu Jiu and Shaanxi Broadcast
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Shaanxi Broadcast. In addition to that, Gansu Jiu is 1.05 times more volatile than Shaanxi Broadcast TV. It trades about -0.09 of its total potential returns per unit of risk. Shaanxi Broadcast TV is currently generating about 0.2 per unit of volatility. If you would invest 245.00 in Shaanxi Broadcast TV on September 3, 2024 and sell it today you would earn a total of 27.00 from holding Shaanxi Broadcast TV or generate 11.02% 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. Shaanxi Broadcast TV
Performance |
| Timeline |
| Gansu Jiu Steel |
| Shaanxi Broadcast |
Gansu Jiu and Shaanxi Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Shaanxi Broadcast
The main advantage of trading using opposite Gansu Jiu and Shaanxi Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Shaanxi Broadcast 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 Shaanxi Broadcast will offset losses from the drop in Shaanxi Broadcast'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 |
| Shaanxi Broadcast vs. Gansu Jiu Steel | Shaanxi Broadcast vs. Ming Yang Smart | Shaanxi Broadcast vs. Aba Chemicals Corp | Shaanxi Broadcast vs. Loctek Ergonomic Technology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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