Correlation Between Gansu Jiu and Sinocat Environmental
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By analyzing existing cross correlation between Gansu Jiu Steel and Sinocat Environmental Technology, you can compare the effects of market volatilities on Gansu Jiu and Sinocat 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 Sinocat Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and Sinocat Environmental.
Diversification Opportunities for Gansu Jiu and Sinocat Environmental
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Sinocat is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and Sinocat Environmental Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocat 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 Sinocat Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocat Environmental has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and Sinocat Environmental go up and down completely randomly.
Pair Corralation between Gansu Jiu and Sinocat Environmental
Assuming the 90 days trading horizon Gansu Jiu is expected to generate 4.21 times less return on investment than Sinocat Environmental. But when comparing it to its historical volatility, Gansu Jiu Steel is 1.53 times less risky than Sinocat Environmental. It trades about 0.15 of its potential returns per unit of risk. Sinocat Environmental Technology is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 1,722 in Sinocat Environmental Technology on September 13, 2024 and sell it today you would earn a total of 665.00 from holding Sinocat Environmental Technology or generate 38.62% 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. Sinocat Environmental Technolo
Performance |
| Timeline |
| Gansu Jiu Steel |
| Sinocat Environmental |
Gansu Jiu and Sinocat Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Jiu and Sinocat Environmental
The main advantage of trading using opposite Gansu Jiu and Sinocat Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, Sinocat 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 Sinocat Environmental will offset losses from the drop in Sinocat Environmental's long position.| Gansu Jiu vs. China Construction Bank | Gansu Jiu vs. Industrial Bank Co | Gansu Jiu vs. Gansu Huangtai Wine marketing | Gansu Jiu vs. Guosheng Financial Holding |
| Sinocat Environmental vs. BeiGene | Sinocat Environmental vs. Kweichow Moutai Co | Sinocat Environmental vs. Beijing Roborock Technology | Sinocat Environmental vs. G bits Network Technology |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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