Correlation Between Gansu Jiu and Shuhua Sports
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gansu Jiu Steel and Shuhua Sports Co, you can compare the effects of market volatilities on Gansu Jiu and Shuhua Sports 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 Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Shuhua Sports.
Diversification Opportunities for Gansu Jiu and Shuhua Sports
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Shuhua is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports 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 Shuhua Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuhua Sports has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Shuhua Sports go up and down completely randomly.
Pair Corralation between Gansu Jiu and Shuhua Sports
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 2.19 times more return on investment than Shuhua Sports. However, Gansu Jiu is 2.19 times more volatile than Shuhua Sports Co. It trades about 0.18 of its potential returns per unit of risk. Shuhua Sports Co is currently generating about 0.25 per unit of risk. If you would invest 140.00 in Gansu Jiu Steel on September 13, 2024 and sell it today you would earn a total of 48.00 from holding Gansu Jiu Steel or generate 34.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Shuhua Sports Co
Performance |
| Timeline |
| Gansu Jiu Steel |
| Shuhua Sports |
Gansu Jiu and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Shuhua Sports
The main advantage of trading using opposite Gansu Jiu and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Shuhua Sports 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 Shuhua Sports will offset losses from the drop in Shuhua Sports' long position.| Gansu Jiu vs. China Construction Bank | Gansu Jiu vs. Industrial Bank Co | Gansu Jiu vs. Gansu Huangtai Wine marketing | Gansu Jiu vs. Guosheng Financial Holding |
| Shuhua Sports vs. Lutian Machinery Co | Shuhua Sports vs. China Longyuan Power | Shuhua Sports vs. PetroChina Co Ltd | Shuhua Sports vs. Bank of China |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |