Correlation Between Sinosteel Luonai and GRIPM Advanced
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sinosteel Luonai Materials and GRIPM Advanced Materials, you can compare the effects of market volatilities on Sinosteel Luonai and GRIPM Advanced 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 GRIPM Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Luonai and GRIPM Advanced.
Diversification Opportunities for Sinosteel Luonai and GRIPM Advanced
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sinosteel and GRIPM is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Luonai Materials and GRIPM Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIPM Advanced Materials 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 GRIPM Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIPM Advanced Materials has no effect on the direction of Sinosteel Luonai i.e., Sinosteel Luonai and GRIPM Advanced go up and down completely randomly.
Pair Corralation between Sinosteel Luonai and GRIPM Advanced
Assuming the 90 days trading horizon Sinosteel Luonai Materials is expected to under-perform the GRIPM Advanced. But the stock apears to be less risky and, when comparing its historical volatility, Sinosteel Luonai Materials is 1.41 times less risky than GRIPM Advanced. The stock trades about -0.05 of its potential returns per unit of risk. The GRIPM Advanced Materials is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,946 in GRIPM Advanced Materials on August 31, 2024 and sell it today you would earn a total of 165.00 from holding GRIPM Advanced Materials or generate 5.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinosteel Luonai Materials vs. GRIPM Advanced Materials
Performance |
| Timeline |
| Sinosteel Luonai Mat |
| GRIPM Advanced Materials |
Sinosteel Luonai and GRIPM Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinosteel Luonai and GRIPM Advanced
The main advantage of trading using opposite Sinosteel Luonai and GRIPM Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Luonai position performs unexpectedly, GRIPM Advanced 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 GRIPM Advanced will offset losses from the drop in GRIPM Advanced's long position.| Sinosteel Luonai vs. Zijin Mining Group | Sinosteel Luonai vs. Baoshan Iron Steel | Sinosteel Luonai vs. Rongsheng Petrochemical Co | Sinosteel Luonai vs. Hoshine Silicon Ind |
| GRIPM Advanced vs. Zijin Mining Group | GRIPM Advanced vs. Baoshan Iron Steel | GRIPM Advanced vs. Rongsheng Petrochemical Co | GRIPM Advanced vs. Hoshine Silicon Ind |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |