Correlation Between Gansu Jiu and Leaguer Shenzhen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gansu Jiu Steel and Leaguer Shenzhen MicroElectronics, you can compare the effects of market volatilities on Gansu Jiu and Leaguer Shenzhen 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 Leaguer Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Leaguer Shenzhen.
Diversification Opportunities for Gansu Jiu and Leaguer Shenzhen
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Leaguer is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Leaguer Shenzhen MicroElectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leaguer Shenzhen Mic 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 Leaguer Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leaguer Shenzhen Mic has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Leaguer Shenzhen go up and down completely randomly.
Pair Corralation between Gansu Jiu and Leaguer Shenzhen
Assuming the 90 days trading horizon Gansu Jiu is expected to generate 1.37 times less return on investment than Leaguer Shenzhen. But when comparing it to its historical volatility, Gansu Jiu Steel is 1.68 times less risky than Leaguer Shenzhen. It trades about 0.02 of its potential returns per unit of risk. Leaguer Shenzhen MicroElectronics is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,779 in Leaguer Shenzhen MicroElectronics on September 12, 2024 and sell it today you would earn a total of 121.00 from holding Leaguer Shenzhen MicroElectronics or generate 4.35% 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. Leaguer Shenzhen MicroElectron
Performance |
| Timeline |
| Gansu Jiu Steel |
| Leaguer Shenzhen Mic |
Gansu Jiu and Leaguer Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Leaguer Shenzhen
The main advantage of trading using opposite Gansu Jiu and Leaguer Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Leaguer Shenzhen 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 Leaguer Shenzhen will offset losses from the drop in Leaguer Shenzhen's long position.| Gansu Jiu vs. Zijin Mining Group | Gansu Jiu vs. Wanhua Chemical Group | Gansu Jiu vs. Baoshan Iron Steel | Gansu Jiu vs. Rongsheng Petrochemical Co |
| Leaguer Shenzhen vs. Gansu Jiu Steel | Leaguer Shenzhen vs. Shandong Mining Machinery | Leaguer Shenzhen vs. Aba Chemicals Corp | Leaguer Shenzhen vs. BlueFocus Communication Group |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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 | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |