Correlation Between Gansu Jiu and Heilongjiang Transport
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By analyzing existing cross correlation between Gansu Jiu Steel and Heilongjiang Transport Development, you can compare the effects of market volatilities on Gansu Jiu and Heilongjiang Transport 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 Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Heilongjiang Transport.
Diversification Opportunities for Gansu Jiu and Heilongjiang Transport
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Heilongjiang is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport 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 Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Gansu Jiu and Heilongjiang Transport
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Heilongjiang Transport. But the stock apears to be less risky and, when comparing its historical volatility, Gansu Jiu Steel is 1.32 times less risky than Heilongjiang Transport. The stock trades about -0.49 of its potential returns per unit of risk. The Heilongjiang Transport Development is currently generating about -0.27 of returns per unit of risk over similar time horizon. If you would invest 395.00 in Heilongjiang Transport Development on October 9, 2024 and sell it today you would lose (58.00) from holding Heilongjiang Transport Development or give up 14.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Gansu Jiu Steel |
| Heilongjiang Transport |
Gansu Jiu and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Heilongjiang Transport
The main advantage of trading using opposite Gansu Jiu and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Heilongjiang Transport 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 Heilongjiang Transport will offset losses from the drop in Heilongjiang Transport'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 |
| Heilongjiang Transport vs. Industrial and Commercial | Heilongjiang Transport vs. Agricultural Bank of | Heilongjiang Transport vs. China Construction Bank | Heilongjiang Transport vs. Bank of China |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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