Correlation Between Gansu Jiu and Jonjee Hi-tech
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gansu Jiu Steel and Jonjee Hi tech Industrial, you can compare the effects of market volatilities on Gansu Jiu and Jonjee Hi-tech 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 Jonjee Hi-tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Jonjee Hi-tech.
Diversification Opportunities for Gansu Jiu and Jonjee Hi-tech
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and Jonjee is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Jonjee Hi tech Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jonjee Hi tech 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 Jonjee Hi-tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jonjee Hi tech has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Jonjee Hi-tech go up and down completely randomly.
Pair Corralation between Gansu Jiu and Jonjee Hi-tech
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 1.18 times more return on investment than Jonjee Hi-tech. However, Gansu Jiu is 1.18 times more volatile than Jonjee Hi tech Industrial. It trades about 0.16 of its potential returns per unit of risk. Jonjee Hi tech Industrial is currently generating about 0.19 per unit of risk. If you would invest 119.00 in Gansu Jiu Steel on September 2, 2024 and sell it today you would earn a total of 47.00 from holding Gansu Jiu Steel or generate 39.5% 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. Jonjee Hi tech Industrial
Performance |
| Timeline |
| Gansu Jiu Steel |
| Jonjee Hi tech |
Gansu Jiu and Jonjee Hi-tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Jonjee Hi-tech
The main advantage of trading using opposite Gansu Jiu and Jonjee Hi-tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Jonjee Hi-tech 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 Jonjee Hi-tech will offset losses from the drop in Jonjee Hi-tech's long position.| Gansu Jiu vs. Western Metal Materials | Gansu Jiu vs. Chengtun Mining Group | Gansu Jiu vs. Uroica Mining Safety | Gansu Jiu vs. Beijing HuaYuanYiTong Thermal |
| Jonjee Hi-tech vs. Nanjing Putian Telecommunications | Jonjee Hi-tech vs. Shenzhen Hifuture Electric | Jonjee Hi-tech vs. Tianjin Realty Development | Jonjee Hi-tech 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |