Correlation Between Gansu Jiu and Duzhe Publishing
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By analyzing existing cross correlation between Gansu Jiu Steel and Duzhe Publishing Media, you can compare the effects of market volatilities on Gansu Jiu and Duzhe Publishing 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 Duzhe Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Duzhe Publishing.
Diversification Opportunities for Gansu Jiu and Duzhe Publishing
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and Duzhe is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Duzhe Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duzhe Publishing Media 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 Duzhe Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duzhe Publishing Media has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Duzhe Publishing go up and down completely randomly.
Pair Corralation between Gansu Jiu and Duzhe Publishing
Assuming the 90 days trading horizon Gansu Jiu is expected to generate 1.1 times less return on investment than Duzhe Publishing. But when comparing it to its historical volatility, Gansu Jiu Steel is 1.4 times less risky than Duzhe Publishing. It trades about 0.03 of its potential returns per unit of risk. Duzhe Publishing Media is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 599.00 in Duzhe Publishing Media on September 4, 2024 and sell it today you would earn a total of 41.00 from holding Duzhe Publishing Media or generate 6.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Duzhe Publishing Media
Performance |
| Timeline |
| Gansu Jiu Steel |
| Duzhe Publishing Media |
Gansu Jiu and Duzhe Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Duzhe Publishing
The main advantage of trading using opposite Gansu Jiu and Duzhe Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Duzhe Publishing 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 Duzhe Publishing will offset losses from the drop in Duzhe Publishing'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 |
| Duzhe Publishing vs. China Railway Materials | Duzhe Publishing vs. Hangzhou Gaoxin Rubber | Duzhe Publishing vs. Guangzhou Seagull Kitchen | Duzhe Publishing vs. Marssenger Kitchenware Co |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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