Correlation Between Liuzhou Chemical and Gem Year
Specify exactly 2 symbols:
By analyzing existing cross correlation between Liuzhou Chemical Industry and Gem Year Industrial Co, you can compare the effects of market volatilities on Liuzhou Chemical and Gem Year 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 Liuzhou Chemical with a short position of Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liuzhou Chemical and Gem Year.
Diversification Opportunities for Liuzhou Chemical and Gem Year
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Liuzhou and Gem is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Liuzhou Chemical Industry and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial and Liuzhou Chemical 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 Liuzhou Chemical Industry are associated (or correlated) with Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Liuzhou Chemical i.e., Liuzhou Chemical and Gem Year go up and down completely randomly.
Pair Corralation between Liuzhou Chemical and Gem Year
Assuming the 90 days trading horizon Liuzhou Chemical Industry is expected to under-perform the Gem Year. In addition to that, Liuzhou Chemical is 1.03 times more volatile than Gem Year Industrial Co. It trades about -0.01 of its total potential returns per unit of risk. Gem Year Industrial Co is currently generating about 0.0 per unit of volatility. If you would invest 483.00 in Gem Year Industrial Co on September 3, 2024 and sell it today you would lose (39.00) from holding Gem Year Industrial Co or give up 8.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liuzhou Chemical Industry vs. Gem Year Industrial Co
Performance |
| Timeline |
| Liuzhou Chemical Industry |
| Gem Year Industrial |
Liuzhou Chemical and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liuzhou Chemical and Gem Year
The main advantage of trading using opposite Liuzhou Chemical and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liuzhou Chemical position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year's long position.| Liuzhou Chemical vs. Ye Chiu Metal | Liuzhou Chemical vs. Xinjiang Baodi Mining | Liuzhou Chemical vs. Anhui Transport Consulting | Liuzhou Chemical vs. Hengli Industrial Development |
| Gem Year vs. Cultural Investment Holdings | Gem Year vs. Gome Telecom Equipment | Gem Year vs. Bus Online Co | Gem Year vs. Holitech Technology Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |