Correlation Between Steel Dynamics and Guangzhou Shiyuan
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By analyzing existing cross correlation between Steel Dynamics and Guangzhou Shiyuan Electronic, you can compare the effects of market volatilities on Steel Dynamics and Guangzhou Shiyuan 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 Steel Dynamics with a short position of Guangzhou Shiyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Dynamics and Guangzhou Shiyuan.
Diversification Opportunities for Steel Dynamics and Guangzhou Shiyuan
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Steel and Guangzhou is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Steel Dynamics and Guangzhou Shiyuan Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Shiyuan and Steel Dynamics 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 Steel Dynamics are associated (or correlated) with Guangzhou Shiyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Shiyuan has no effect on the direction of Steel Dynamics i.e., Steel Dynamics and Guangzhou Shiyuan go up and down completely randomly.
Pair Corralation between Steel Dynamics and Guangzhou Shiyuan
Given the investment horizon of 90 days Steel Dynamics is expected to generate 0.91 times more return on investment than Guangzhou Shiyuan. However, Steel Dynamics is 1.1 times less risky than Guangzhou Shiyuan. It trades about 0.04 of its potential returns per unit of risk. Guangzhou Shiyuan Electronic is currently generating about -0.03 per unit of risk. If you would invest 10,868 in Steel Dynamics on September 4, 2024 and sell it today you would earn a total of 3,613 from holding Steel Dynamics or generate 33.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.0% |
| Values | Daily Returns |
Steel Dynamics vs. Guangzhou Shiyuan Electronic
Performance |
| Timeline |
| Steel Dynamics |
| Guangzhou Shiyuan |
Steel Dynamics and Guangzhou Shiyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Dynamics and Guangzhou Shiyuan
The main advantage of trading using opposite Steel Dynamics and Guangzhou Shiyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Dynamics position performs unexpectedly, Guangzhou Shiyuan 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 Guangzhou Shiyuan will offset losses from the drop in Guangzhou Shiyuan's long position.| Steel Dynamics vs. Cleveland Cliffs | Steel Dynamics vs. United States Steel | Steel Dynamics vs. ArcelorMittal SA ADR | Steel Dynamics vs. Reliance Steel Aluminum |
| Guangzhou Shiyuan vs. Qtone Education Group | Guangzhou Shiyuan vs. Time Publishing and | Guangzhou Shiyuan vs. Focus Media Information | Guangzhou Shiyuan vs. Changjiang Publishing 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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