Correlation Between Gem Year and Asia Potash
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By analyzing existing cross correlation between Gem Year Industrial Co and Asia Potash International, you can compare the effects of market volatilities on Gem Year and Asia Potash 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 Gem Year with a short position of Asia Potash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Asia Potash.
Diversification Opportunities for Gem Year and Asia Potash
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gem and Asia is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co and Asia Potash International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Potash International and Gem Year 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 Gem Year Industrial Co are associated (or correlated) with Asia Potash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Potash International has no effect on the direction of Gem Year i.e., Gem Year and Asia Potash go up and down completely randomly.
Pair Corralation between Gem Year and Asia Potash
Assuming the 90 days trading horizon Gem Year Industrial Co is expected to generate 0.99 times more return on investment than Asia Potash. However, Gem Year Industrial Co is 1.01 times less risky than Asia Potash. It trades about 0.28 of its potential returns per unit of risk. Asia Potash International is currently generating about 0.21 per unit of risk. If you would invest 296.00 in Gem Year Industrial Co on September 12, 2024 and sell it today you would earn a total of 191.00 from holding Gem Year Industrial Co or generate 64.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Asia Potash International
Performance |
| Timeline |
| Gem Year Industrial |
| Asia Potash International |
Gem Year and Asia Potash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Asia Potash
The main advantage of trading using opposite Gem Year and Asia Potash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year position performs unexpectedly, Asia Potash 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 Asia Potash will offset losses from the drop in Asia Potash's long position.| Gem Year vs. Qtone Education Group | Gem Year vs. Zhuhai Comleader Information | Gem Year vs. Chinese Universe Publishing | Gem Year vs. Beijing Jiaman Dress |
| Asia Potash vs. Emdoor Information Co | Asia Potash vs. Sunwave Communications Co | Asia Potash vs. State Grid InformationCommunication | Asia Potash vs. Jilin Jlu Communication |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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