Correlation Between Gem Year and Western Metal
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gem Year Industrial Co and Western Metal Materials, you can compare the effects of market volatilities on Gem Year and Western Metal 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 Western Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Western Metal.
Diversification Opportunities for Gem Year and Western Metal
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gem and Western is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co and Western Metal Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metal Materials 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 Western Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metal Materials has no effect on the direction of Gem Year i.e., Gem Year and Western Metal go up and down completely randomly.
Pair Corralation between Gem Year and Western Metal
Assuming the 90 days trading horizon Gem Year is expected to generate 9.08 times less return on investment than Western Metal. But when comparing it to its historical volatility, Gem Year Industrial Co is 1.17 times less risky than Western Metal. It trades about 0.0 of its potential returns per unit of risk. Western Metal Materials is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,470 in Western Metal Materials on August 29, 2024 and sell it today you would earn a total of 173.00 from holding Western Metal Materials or generate 11.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Western Metal Materials
Performance |
| Timeline |
| Gem Year Industrial |
| Western Metal Materials |
Gem Year and Western Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Western Metal
The main advantage of trading using opposite Gem Year and Western Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year position performs unexpectedly, Western Metal 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 Western Metal will offset losses from the drop in Western Metal's long position.| Gem Year vs. PetroChina Co Ltd | Gem Year vs. China State Construction | Gem Year vs. China Mobile Limited | Gem Year vs. Industrial and Commercial |
| Western Metal vs. Shandong Gold Mining | Western Metal vs. Rongsheng Petrochemical Co | Western Metal vs. Inner Mongolia BaoTou | Western Metal vs. Jiangxi Ganfeng Lithium |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |