Correlation Between Gem Year and China Building
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By analyzing existing cross correlation between Gem Year Industrial Co and China Building Material, you can compare the effects of market volatilities on Gem Year and China Building 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 China Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and China Building.
Diversification Opportunities for Gem Year and China Building
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gem and China is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co and China Building Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Building Material 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 China Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Building Material has no effect on the direction of Gem Year i.e., Gem Year and China Building go up and down completely randomly.
Pair Corralation between Gem Year and China Building
Assuming the 90 days trading horizon Gem Year Industrial Co is expected to generate 0.89 times more return on investment than China Building. However, Gem Year Industrial Co is 1.12 times less risky than China Building. It trades about -0.26 of its potential returns per unit of risk. China Building Material is currently generating about -0.32 per unit of risk. If you would invest 487.00 in Gem Year Industrial Co on October 12, 2024 and sell it today you would lose (60.00) from holding Gem Year Industrial Co or give up 12.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. China Building Material
Performance |
| Timeline |
| Gem Year Industrial |
| China Building Material |
Gem Year and China Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and China Building
The main advantage of trading using opposite Gem Year and China Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year position performs unexpectedly, China Building 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 China Building will offset losses from the drop in China Building's long position.| Gem Year vs. Fujian Anjoy Foods | Gem Year vs. Guilin Seamild Foods | Gem Year vs. Shanghai Ziyan Foods | Gem Year vs. Anji Foodstuff Co |
| China Building vs. Gem Year Industrial Co | China Building vs. Suzhou Industrial Park | China Building vs. Anhui Huilong Agricultural | China Building vs. Masterwork Machinery |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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