Correlation Between Gem Year and Liuzhou Chemical
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By analyzing existing cross correlation between Gem Year Industrial Co and Liuzhou Chemical Industry, you can compare the effects of market volatilities on Gem Year and Liuzhou Chemical 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 Liuzhou Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Liuzhou Chemical.
Diversification Opportunities for Gem Year and Liuzhou Chemical
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gem and Liuzhou is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co and Liuzhou Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liuzhou Chemical Industry 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 Liuzhou Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liuzhou Chemical Industry has no effect on the direction of Gem Year i.e., Gem Year and Liuzhou Chemical go up and down completely randomly.
Pair Corralation between Gem Year and Liuzhou Chemical
Assuming the 90 days trading horizon Gem Year is expected to generate 2.98 times less return on investment than Liuzhou Chemical. But when comparing it to its historical volatility, Gem Year Industrial Co is 1.14 times less risky than Liuzhou Chemical. It trades about 0.0 of its potential returns per unit of risk. Liuzhou Chemical Industry is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 307.00 in Liuzhou Chemical Industry on August 31, 2024 and sell it today you would lose (2.00) from holding Liuzhou Chemical Industry or give up 0.65% of portfolio value 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. Liuzhou Chemical Industry
Performance |
| Timeline |
| Gem Year Industrial |
| Liuzhou Chemical Industry |
Gem Year and Liuzhou Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Liuzhou Chemical
The main advantage of trading using opposite Gem Year and Liuzhou Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year position performs unexpectedly, Liuzhou Chemical 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 Liuzhou Chemical will offset losses from the drop in Liuzhou Chemical's long position.| Gem Year vs. Cultural Investment Holdings | Gem Year vs. Gome Telecom Equipment | Gem Year vs. Bus Online Co | Gem Year vs. Holitech Technology Co |
| Liuzhou Chemical vs. Yili Chuanning Biotechnology | Liuzhou Chemical vs. Zhongshan Public Utilities | Liuzhou Chemical vs. Jiangsu GDK Biotechnology | Liuzhou Chemical vs. Threes Company Media |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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