Correlation Between Nanjing Vishee and Gansu Jiu
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By analyzing existing cross correlation between Nanjing Vishee Medical and Gansu Jiu Steel, you can compare the effects of market volatilities on Nanjing Vishee and Gansu Jiu 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 Nanjing Vishee with a short position of Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Vishee and Gansu Jiu.
Diversification Opportunities for Nanjing Vishee and Gansu Jiu
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Gansu is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Vishee Medical and Gansu Jiu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Jiu Steel and Nanjing Vishee 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 Nanjing Vishee Medical are associated (or correlated) with Gansu Jiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Jiu Steel has no effect on the direction of Nanjing Vishee i.e., Nanjing Vishee and Gansu Jiu go up and down completely randomly.
Pair Corralation between Nanjing Vishee and Gansu Jiu
Assuming the 90 days trading horizon Nanjing Vishee Medical is expected to under-perform the Gansu Jiu. In addition to that, Nanjing Vishee is 1.85 times more volatile than Gansu Jiu Steel. It trades about -0.03 of its total potential returns per unit of risk. Gansu Jiu Steel is currently generating about -0.01 per unit of volatility. If you would invest 173.00 in Gansu Jiu Steel on October 13, 2024 and sell it today you would lose (28.00) from holding Gansu Jiu Steel or give up 16.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Vishee Medical vs. Gansu Jiu Steel
Performance |
| Timeline |
| Nanjing Vishee Medical |
| Gansu Jiu Steel |
Nanjing Vishee and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Vishee and Gansu Jiu
The main advantage of trading using opposite Nanjing Vishee and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Vishee position performs unexpectedly, Gansu Jiu 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 Gansu Jiu will offset losses from the drop in Gansu Jiu's long position.| Nanjing Vishee vs. Henan Shuanghui Investment | Nanjing Vishee vs. Jointo Energy Investment | Nanjing Vishee vs. Hubei Geoway Investment | Nanjing Vishee vs. Luyin Investment Group |
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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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