Correlation Between Gansu Jiu and Xiamen Goldenhome
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gansu Jiu Steel and Xiamen Goldenhome Co, you can compare the effects of market volatilities on Gansu Jiu and Xiamen Goldenhome 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 Xiamen Goldenhome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Xiamen Goldenhome.
Diversification Opportunities for Gansu Jiu and Xiamen Goldenhome
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gansu and Xiamen is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Xiamen Goldenhome Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Goldenhome 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 Xiamen Goldenhome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Goldenhome has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Xiamen Goldenhome go up and down completely randomly.
Pair Corralation between Gansu Jiu and Xiamen Goldenhome
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Xiamen Goldenhome. But the stock apears to be less risky and, when comparing its historical volatility, Gansu Jiu Steel is 1.08 times less risky than Xiamen Goldenhome. The stock trades about -0.3 of its potential returns per unit of risk. The Xiamen Goldenhome Co is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 2,125 in Xiamen Goldenhome Co on October 25, 2024 and sell it today you would lose (141.00) from holding Xiamen Goldenhome Co or give up 6.64% 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. Xiamen Goldenhome Co
Performance |
| Timeline |
| Gansu Jiu Steel |
| Xiamen Goldenhome |
Gansu Jiu and Xiamen Goldenhome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Xiamen Goldenhome
The main advantage of trading using opposite Gansu Jiu and Xiamen Goldenhome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Xiamen Goldenhome 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 Xiamen Goldenhome will offset losses from the drop in Xiamen Goldenhome's long position.| Gansu Jiu vs. Dynagreen Environmental Protection | Gansu Jiu vs. Universal Scientific Industrial | Gansu Jiu vs. Anyang Iron Steel | Gansu Jiu vs. Tongxing Environmental Protection |
| Xiamen Goldenhome vs. PetroChina Co Ltd | Xiamen Goldenhome vs. Gansu Jiu Steel | Xiamen Goldenhome vs. Ming Yang Smart | Xiamen Goldenhome vs. Aba Chemicals Corp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |