Correlation Between Gansu Jiu and GreenTech Environmental
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By analyzing existing cross correlation between Gansu Jiu Steel and GreenTech Environmental Co, you can compare the effects of market volatilities on Gansu Jiu and GreenTech Environmental 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 GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and GreenTech Environmental.
Diversification Opportunities for Gansu Jiu and GreenTech Environmental
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gansu and GreenTech is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech Environmental 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 GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and GreenTech Environmental go up and down completely randomly.
Pair Corralation between Gansu Jiu and GreenTech Environmental
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the GreenTech Environmental. But the stock apears to be less risky and, when comparing its historical volatility, Gansu Jiu Steel is 1.19 times less risky than GreenTech Environmental. The stock trades about -0.07 of its potential returns per unit of risk. The GreenTech Environmental Co is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,325 in GreenTech Environmental Co on November 4, 2024 and sell it today you would earn a total of 60.00 from holding GreenTech Environmental Co or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. GreenTech Environmental Co
Performance |
| Timeline |
| Gansu Jiu Steel |
| GreenTech Environmental |
Gansu Jiu and GreenTech Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and GreenTech Environmental
The main advantage of trading using opposite Gansu Jiu and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, GreenTech Environmental 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental'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 |
| GreenTech Environmental vs. Keeson Technology Corp | GreenTech Environmental vs. UCloud Technology Co | GreenTech Environmental vs. Qingdao Haier Biomedical | GreenTech Environmental vs. Sino Medical Sciences |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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