Correlation Between Gansu Jiu and Jiangsu Seagull
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By analyzing existing cross correlation between Gansu Jiu Steel and Jiangsu Seagull Cooling, you can compare the effects of market volatilities on Gansu Jiu and Jiangsu Seagull 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 Jiangsu Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Jiangsu Seagull.
Diversification Opportunities for Gansu Jiu and Jiangsu Seagull
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gansu and Jiangsu is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Jiangsu Seagull Cooling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Seagull Cooling 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 Jiangsu Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Seagull Cooling has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Jiangsu Seagull go up and down completely randomly.
Pair Corralation between Gansu Jiu and Jiangsu Seagull
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Jiangsu Seagull. But the stock apears to be less risky and, when comparing its historical volatility, Gansu Jiu Steel is 4.47 times less risky than Jiangsu Seagull. The stock trades about -0.07 of its potential returns per unit of risk. The Jiangsu Seagull Cooling is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,054 in Jiangsu Seagull Cooling on November 4, 2024 and sell it today you would earn a total of 96.00 from holding Jiangsu Seagull Cooling or generate 9.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Jiangsu Seagull Cooling
Performance |
| Timeline |
| Gansu Jiu Steel |
| Jiangsu Seagull Cooling |
Gansu Jiu and Jiangsu Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Jiangsu Seagull
The main advantage of trading using opposite Gansu Jiu and Jiangsu Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Jiangsu Seagull 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 Jiangsu Seagull will offset losses from the drop in Jiangsu Seagull's long position.| Gansu Jiu vs. Eyebright Medical Technology | Gansu Jiu vs. FSPG Hi Tech Co | Gansu Jiu vs. Hengkang Medical Group | Gansu Jiu vs. Maxvision Technology Corp |
| Jiangsu Seagull vs. China Satellite Communications | Jiangsu Seagull vs. Beijing Bewinner Communications | Jiangsu Seagull vs. Servyou Software Group | Jiangsu Seagull vs. Guangzhou Haige Communications |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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