Correlation Between Gansu Jiu and Shanghai Action
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By analyzing existing cross correlation between Gansu Jiu Steel and Shanghai Action Education, you can compare the effects of market volatilities on Gansu Jiu and Shanghai Action 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 Shanghai Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Shanghai Action.
Diversification Opportunities for Gansu Jiu and Shanghai Action
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gansu and Shanghai is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education 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 Shanghai Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Shanghai Action go up and down completely randomly.
Pair Corralation between Gansu Jiu and Shanghai Action
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Shanghai Action. But the stock apears to be less risky and, when comparing its historical volatility, Gansu Jiu Steel is 1.22 times less risky than Shanghai Action. The stock trades about -0.07 of its potential returns per unit of risk. The Shanghai Action Education is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,558 in Shanghai Action Education on November 4, 2024 and sell it today you would lose (5.00) from holding Shanghai Action Education or give up 0.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Shanghai Action Education
Performance |
| Timeline |
| Gansu Jiu Steel |
| Shanghai Action Education |
Gansu Jiu and Shanghai Action Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Shanghai Action
The main advantage of trading using opposite Gansu Jiu and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Shanghai Action 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 Shanghai Action will offset losses from the drop in Shanghai Action'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 |
| Shanghai Action vs. Bsm Chemical Co | Shanghai Action vs. Liuzhou Chemical Industry | Shanghai Action vs. Jinsanjiang Silicon Material | Shanghai Action vs. Songz Automobile Air |
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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