Correlation Between Gansu Jiu and Hefei Metalforming
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gansu Jiu Steel and Hefei Metalforming Mach, you can compare the effects of market volatilities on Gansu Jiu and Hefei Metalforming 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 Hefei Metalforming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Hefei Metalforming.
Diversification Opportunities for Gansu Jiu and Hefei Metalforming
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gansu and Hefei is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Hefei Metalforming Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hefei Metalforming Mach 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 Hefei Metalforming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hefei Metalforming Mach has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Hefei Metalforming go up and down completely randomly.
Pair Corralation between Gansu Jiu and Hefei Metalforming
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Hefei Metalforming. But the stock apears to be less risky and, when comparing its historical volatility, Gansu Jiu Steel is 1.67 times less risky than Hefei Metalforming. The stock trades about -0.28 of its potential returns per unit of risk. The Hefei Metalforming Mach is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 708.00 in Hefei Metalforming Mach on October 24, 2024 and sell it today you would lose (2.00) from holding Hefei Metalforming Mach or give up 0.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Hefei Metalforming Mach
Performance |
| Timeline |
| Gansu Jiu Steel |
| Hefei Metalforming Mach |
Gansu Jiu and Hefei Metalforming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Hefei Metalforming
The main advantage of trading using opposite Gansu Jiu and Hefei Metalforming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Hefei Metalforming 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 Hefei Metalforming will offset losses from the drop in Hefei Metalforming's long position.| Gansu Jiu vs. Sichuan Hebang Biotechnology | Gansu Jiu vs. Guilin Seamild Foods | Gansu Jiu vs. HaiXin Foods Co | Gansu Jiu vs. Zhongjing Food Co |
| Hefei Metalforming vs. Touchstone International Medical | Hefei Metalforming vs. Tinavi Medical Technologies | Hefei Metalforming vs. Xiangyu Medical Co | Hefei Metalforming vs. China Publishing Media |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |