Correlation Between Sinosteel Luonai and China International
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By analyzing existing cross correlation between Sinosteel Luonai Materials and China International Travel, you can compare the effects of market volatilities on Sinosteel Luonai and China International 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 Sinosteel Luonai with a short position of China International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Luonai and China International.
Diversification Opportunities for Sinosteel Luonai and China International
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinosteel and China is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Luonai Materials and China International Travel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China International and Sinosteel Luonai 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 Sinosteel Luonai Materials are associated (or correlated) with China International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China International has no effect on the direction of Sinosteel Luonai i.e., Sinosteel Luonai and China International go up and down completely randomly.
Pair Corralation between Sinosteel Luonai and China International
Assuming the 90 days trading horizon Sinosteel Luonai Materials is expected to generate 0.98 times more return on investment than China International. However, Sinosteel Luonai Materials is 1.02 times less risky than China International. It trades about -0.02 of its potential returns per unit of risk. China International Travel is currently generating about -0.05 per unit of risk. If you would invest 557.00 in Sinosteel Luonai Materials on September 12, 2024 and sell it today you would lose (122.00) from holding Sinosteel Luonai Materials or give up 21.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinosteel Luonai Materials vs. China International Travel
Performance |
| Timeline |
| Sinosteel Luonai Mat |
| China International |
Sinosteel Luonai and China International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinosteel Luonai and China International
The main advantage of trading using opposite Sinosteel Luonai and China International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Luonai position performs unexpectedly, China International 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 International will offset losses from the drop in China International's long position.| Sinosteel Luonai vs. Zijin Mining Group | Sinosteel Luonai vs. Wanhua Chemical Group | Sinosteel Luonai vs. Baoshan Iron Steel | Sinosteel Luonai vs. Rongsheng Petrochemical Co |
| China International vs. Guangdong Qunxing Toys | China International vs. Sinosteel Luonai Materials | China International vs. Jinsanjiang Silicon Material | China International vs. Cofco Biochemical Anhui |
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 Stocks Directory module to find actively traded stocks across global markets.
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