Correlation Between Gansu Jiu and Zhejiang Xiantong
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By analyzing existing cross correlation between Gansu Jiu Steel and Zhejiang Xiantong RubberPlastic, you can compare the effects of market volatilities on Gansu Jiu and Zhejiang Xiantong 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 Zhejiang Xiantong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Zhejiang Xiantong.
Diversification Opportunities for Gansu Jiu and Zhejiang Xiantong
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gansu and Zhejiang is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Zhejiang Xiantong RubberPlasti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Xiantong 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 Zhejiang Xiantong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Xiantong has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Zhejiang Xiantong go up and down completely randomly.
Pair Corralation between Gansu Jiu and Zhejiang Xiantong
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 0.77 times more return on investment than Zhejiang Xiantong. However, Gansu Jiu Steel is 1.3 times less risky than Zhejiang Xiantong. It trades about 0.03 of its potential returns per unit of risk. Zhejiang Xiantong RubberPlastic is currently generating about 0.02 per unit of risk. If you would invest 164.00 in Gansu Jiu Steel on September 12, 2024 and sell it today you would earn a total of 21.00 from holding Gansu Jiu Steel or generate 12.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Zhejiang Xiantong RubberPlasti
Performance |
| Timeline |
| Gansu Jiu Steel |
| Zhejiang Xiantong |
Gansu Jiu and Zhejiang Xiantong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Zhejiang Xiantong
The main advantage of trading using opposite Gansu Jiu and Zhejiang Xiantong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Zhejiang Xiantong 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 Zhejiang Xiantong will offset losses from the drop in Zhejiang Xiantong's long position.| Gansu Jiu vs. Zijin Mining Group | Gansu Jiu vs. Wanhua Chemical Group | Gansu Jiu vs. Baoshan Iron Steel | Gansu Jiu vs. Rongsheng Petrochemical Co |
| Zhejiang Xiantong vs. Lutian Machinery Co | Zhejiang Xiantong vs. PetroChina Co Ltd | Zhejiang Xiantong vs. Bank of China | Zhejiang Xiantong vs. Gansu Jiu Steel |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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