Correlation Between Gansu Jiu and Changchun Engley
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gansu Jiu Steel and Changchun Engley Automobile, you can compare the effects of market volatilities on Gansu Jiu and Changchun Engley 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 Engley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Changchun Engley.
Diversification Opportunities for Gansu Jiu and Changchun Engley
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and Changchun is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Changchun Engley Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Engley Aut 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 Engley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Engley Aut has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Changchun Engley go up and down completely randomly.
Pair Corralation between Gansu Jiu and Changchun Engley
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Changchun Engley. But the stock apears to be less risky and, when comparing its historical volatility, Gansu Jiu Steel is 1.25 times less risky than Changchun Engley. The stock trades about -0.49 of its potential returns per unit of risk. The Changchun Engley Automobile is currently generating about -0.29 of returns per unit of risk over similar time horizon. If you would invest 436.00 in Changchun Engley Automobile on October 9, 2024 and sell it today you would lose (65.00) from holding Changchun Engley Automobile or give up 14.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Changchun Engley Automobile
Performance |
| Timeline |
| Gansu Jiu Steel |
| Changchun Engley Aut |
Gansu Jiu and Changchun Engley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Changchun Engley
The main advantage of trading using opposite Gansu Jiu and Changchun Engley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Changchun Engley 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 Engley will offset losses from the drop in Changchun Engley'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 |
| Changchun Engley vs. Ming Yang Smart | Changchun Engley vs. 159681 | Changchun Engley vs. 159005 | Changchun Engley 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |