Correlation Between Gansu Jiu and Everdisplay Optronics
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By analyzing existing cross correlation between Gansu Jiu Steel and Everdisplay Optronics Shanghai, you can compare the effects of market volatilities on Gansu Jiu and Everdisplay Optronics 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 Everdisplay Optronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Everdisplay Optronics.
Diversification Opportunities for Gansu Jiu and Everdisplay Optronics
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and Everdisplay is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Everdisplay Optronics Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everdisplay Optronics 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 Everdisplay Optronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everdisplay Optronics has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Everdisplay Optronics go up and down completely randomly.
Pair Corralation between Gansu Jiu and Everdisplay Optronics
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the Everdisplay Optronics. In addition to that, Gansu Jiu is 1.26 times more volatile than Everdisplay Optronics Shanghai. It trades about -0.28 of its total potential returns per unit of risk. Everdisplay Optronics Shanghai is currently generating about -0.26 per unit of volatility. If you would invest 244.00 in Everdisplay Optronics Shanghai on October 24, 2024 and sell it today you would lose (20.00) from holding Everdisplay Optronics Shanghai or give up 8.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Jiu Steel vs. Everdisplay Optronics Shanghai
Performance |
| Timeline |
| Gansu Jiu Steel |
| Everdisplay Optronics |
Gansu Jiu and Everdisplay Optronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Everdisplay Optronics
The main advantage of trading using opposite Gansu Jiu and Everdisplay Optronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Everdisplay Optronics 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 Everdisplay Optronics will offset losses from the drop in Everdisplay Optronics' 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 |
| Everdisplay Optronics vs. Xiamen Goldenhome Co | Everdisplay Optronics vs. Aba Chemicals Corp | Everdisplay Optronics vs. Sharetronic Data Technology | Everdisplay Optronics vs. AUPU Home Style |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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