Correlation Between Gansu Jiu and Xingguang Agricultural
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gansu Jiu Steel and Xingguang Agricultural Mach, you can compare the effects of market volatilities on Gansu Jiu and Xingguang Agricultural 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 Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Xingguang Agricultural.
Diversification Opportunities for Gansu Jiu and Xingguang Agricultural
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and Xingguang is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural 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 Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between Gansu Jiu and Xingguang Agricultural
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Xingguang Agricultural. But the stock apears to be less risky and, when comparing its historical volatility, Gansu Jiu Steel is 1.67 times less risky than Xingguang Agricultural. The stock trades about -0.22 of its potential returns per unit of risk. The Xingguang Agricultural Mach is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 908.00 in Xingguang Agricultural Mach on October 9, 2024 and sell it today you would lose (185.00) from holding Xingguang Agricultural Mach or give up 20.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Xingguang Agricultural Mach
Performance |
| Timeline |
| Gansu Jiu Steel |
| Xingguang Agricultural |
Gansu Jiu and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Xingguang Agricultural
The main advantage of trading using opposite Gansu Jiu and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural's long position.| Gansu Jiu vs. Zijin Mining Group | Gansu Jiu vs. Wanhua Chemical Group | Gansu Jiu vs. Baoshan Iron Steel | Gansu Jiu vs. Shandong Gold Mining |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |