Correlation Between Gansu Jiu and Kunshan Guoli
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By analyzing existing cross correlation between Gansu Jiu Steel and Kunshan Guoli Electronic, you can compare the effects of market volatilities on Gansu Jiu and Kunshan Guoli 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 Kunshan Guoli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Kunshan Guoli.
Diversification Opportunities for Gansu Jiu and Kunshan Guoli
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gansu and Kunshan is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Kunshan Guoli Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunshan Guoli Electronic 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 Kunshan Guoli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunshan Guoli Electronic has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Kunshan Guoli go up and down completely randomly.
Pair Corralation between Gansu Jiu and Kunshan Guoli
Assuming the 90 days trading horizon Gansu Jiu is expected to generate 6.88 times less return on investment than Kunshan Guoli. But when comparing it to its historical volatility, Gansu Jiu Steel is 1.27 times less risky than Kunshan Guoli. It trades about 0.01 of its potential returns per unit of risk. Kunshan Guoli Electronic is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,377 in Kunshan Guoli Electronic on January 22, 2025 and sell it today you would earn a total of 1,434 from holding Kunshan Guoli Electronic or generate 42.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Kunshan Guoli Electronic
Performance |
| Timeline |
| Gansu Jiu Steel |
| Kunshan Guoli Electronic |
Gansu Jiu and Kunshan Guoli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Kunshan Guoli
The main advantage of trading using opposite Gansu Jiu and Kunshan Guoli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Kunshan Guoli 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 Kunshan Guoli will offset losses from the drop in Kunshan Guoli'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 |
| Kunshan Guoli vs. Industrial and Commercial | Kunshan Guoli vs. China Construction Bank | Kunshan Guoli vs. Bank of China | Kunshan Guoli vs. Agricultural Bank of |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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