Correlation Between Gansu Jiu and Southern PublishingMedia
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By analyzing existing cross correlation between Gansu Jiu Steel and Southern PublishingMedia Co, you can compare the effects of market volatilities on Gansu Jiu and Southern PublishingMedia 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 Southern PublishingMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Southern PublishingMedia.
Diversification Opportunities for Gansu Jiu and Southern PublishingMedia
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Southern is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Southern PublishingMedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern PublishingMedia 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 Southern PublishingMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern PublishingMedia has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Southern PublishingMedia go up and down completely randomly.
Pair Corralation between Gansu Jiu and Southern PublishingMedia
Assuming the 90 days trading horizon Gansu Jiu is expected to generate 17.47 times less return on investment than Southern PublishingMedia. But when comparing it to its historical volatility, Gansu Jiu Steel is 2.03 times less risky than Southern PublishingMedia. It trades about 0.01 of its potential returns per unit of risk. Southern PublishingMedia Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 811.00 in Southern PublishingMedia Co on September 3, 2024 and sell it today you would earn a total of 692.00 from holding Southern PublishingMedia Co or generate 85.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Southern PublishingMedia Co
Performance |
| Timeline |
| Gansu Jiu Steel |
| Southern PublishingMedia |
Gansu Jiu and Southern PublishingMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Southern PublishingMedia
The main advantage of trading using opposite Gansu Jiu and Southern PublishingMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Southern PublishingMedia 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 Southern PublishingMedia will offset losses from the drop in Southern PublishingMedia'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 |
| Southern PublishingMedia vs. Gansu Jiu Steel | Southern PublishingMedia vs. Ming Yang Smart | Southern PublishingMedia vs. Aba Chemicals Corp | Southern PublishingMedia 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 CEOs Directory module to screen CEOs from public companies around the world.
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