Correlation Between Gansu Jiu and Sinocelltech
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By analyzing existing cross correlation between Gansu Jiu Steel and Sinocelltech Group, you can compare the effects of market volatilities on Gansu Jiu and Sinocelltech 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 Sinocelltech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Sinocelltech.
Diversification Opportunities for Gansu Jiu and Sinocelltech
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gansu and Sinocelltech is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Sinocelltech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocelltech Group 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 Sinocelltech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocelltech Group has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Sinocelltech go up and down completely randomly.
Pair Corralation between Gansu Jiu and Sinocelltech
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to generate 1.6 times more return on investment than Sinocelltech. However, Gansu Jiu is 1.6 times more volatile than Sinocelltech Group. It trades about 0.01 of its potential returns per unit of risk. Sinocelltech Group is currently generating about -0.06 per unit of risk. If you would invest 149.00 in Gansu Jiu Steel on October 24, 2024 and sell it today you would lose (2.00) from holding Gansu Jiu Steel or give up 1.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Sinocelltech Group
Performance |
| Timeline |
| Gansu Jiu Steel |
| Sinocelltech Group |
Gansu Jiu and Sinocelltech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Sinocelltech
The main advantage of trading using opposite Gansu Jiu and Sinocelltech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Sinocelltech 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 Sinocelltech will offset losses from the drop in Sinocelltech's long position.| Gansu Jiu vs. Sichuan Hebang Biotechnology | Gansu Jiu vs. Guilin Seamild Foods | Gansu Jiu vs. HaiXin Foods Co | Gansu Jiu vs. Zhongjing Food Co |
| Sinocelltech vs. Zhongjing Food Co | Sinocelltech vs. Northern United Publishing | Sinocelltech vs. Suzhou Weizhixiang Food | Sinocelltech vs. Xinhua Winshare Publishing |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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