Correlation Between Changjiang Jinggong and Gansu Huangtai
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By analyzing existing cross correlation between Changjiang Jinggong Steel and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Changjiang Jinggong and Gansu Huangtai 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 Changjiang Jinggong with a short position of Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Jinggong and Gansu Huangtai.
Diversification Opportunities for Changjiang Jinggong and Gansu Huangtai
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changjiang and Gansu is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Jinggong Steel and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine and Changjiang Jinggong 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 Changjiang Jinggong Steel are associated (or correlated) with Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Changjiang Jinggong i.e., Changjiang Jinggong and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Changjiang Jinggong and Gansu Huangtai
Assuming the 90 days trading horizon Changjiang Jinggong Steel is expected to generate 0.49 times more return on investment than Gansu Huangtai. However, Changjiang Jinggong Steel is 2.03 times less risky than Gansu Huangtai. It trades about 0.04 of its potential returns per unit of risk. Gansu Huangtai Wine marketing is currently generating about -0.04 per unit of risk. If you would invest 295.00 in Changjiang Jinggong Steel on August 27, 2024 and sell it today you would earn a total of 4.00 from holding Changjiang Jinggong Steel or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Jinggong Steel vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Changjiang Jinggong Steel |
| Gansu Huangtai Wine |
Changjiang Jinggong and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Jinggong and Gansu Huangtai
The main advantage of trading using opposite Changjiang Jinggong and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Jinggong position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Changjiang Jinggong vs. Cultural Investment Holdings | Changjiang Jinggong vs. China Express Airlines | Changjiang Jinggong vs. Blue Sail Medical | Changjiang Jinggong vs. Xiandai Investment Co |
| Gansu Huangtai vs. Zhongyin Babi Food | Gansu Huangtai vs. Shaanxi Energy Investment | Gansu Huangtai vs. Youyou Foods Co | Gansu Huangtai vs. Zoje Resources Investment |
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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