Correlation Between Gansu Jiu and Chahua Modern
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By analyzing existing cross correlation between Gansu Jiu Steel and Chahua Modern Housewares, you can compare the effects of market volatilities on Gansu Jiu and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Chahua Modern.
Diversification Opportunities for Gansu Jiu and Chahua Modern
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gansu and Chahua is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Chahua Modern go up and down completely randomly.
Pair Corralation between Gansu Jiu and Chahua Modern
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Chahua Modern. But the stock apears to be less risky and, when comparing its historical volatility, Gansu Jiu Steel is 1.64 times less risky than Chahua Modern. The stock trades about -0.07 of its potential returns per unit of risk. The Chahua Modern Housewares is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,087 in Chahua Modern Housewares on November 4, 2024 and sell it today you would earn a total of 199.00 from holding Chahua Modern Housewares or generate 9.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Chahua Modern Housewares
Performance |
| Timeline |
| Gansu Jiu Steel |
| Chahua Modern Housewares |
Gansu Jiu and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Chahua Modern
The main advantage of trading using opposite Gansu Jiu and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern'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 |
| Chahua Modern vs. Jilin Jlu Communication | Chahua Modern vs. Sihui Fuji Electronics | Chahua Modern vs. Anhui Shiny Electronic | Chahua Modern vs. Integrated Electronic Systems |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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