Correlation Between Gansu Jiu and V V
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By analyzing existing cross correlation between Gansu Jiu Steel and V V Food, you can compare the effects of market volatilities on Gansu Jiu and V V 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 Gansu Jiu with a short position of V V. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Jiu and V V.
Diversification Opportunities for Gansu Jiu and V V
Very weak diversification
The 3 months correlation between Gansu and 600300 is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Jiu Steel and V V Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V V Food and Gansu Jiu 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 Gansu Jiu Steel are associated (or correlated) with V V. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V V Food has no effect on the direction of Gansu Jiu i.e., Gansu Jiu and V V go up and down completely randomly.
Pair Corralation between Gansu Jiu and V V
Assuming the 90 days trading horizon Gansu Jiu Steel is expected to under-perform the V V. But the stock apears to be less risky and, when comparing its historical volatility, Gansu Jiu Steel is 1.49 times less risky than V V. The stock trades about -0.11 of its potential returns per unit of risk. The V V Food is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 294.00 in V V Food on October 22, 2024 and sell it today you would earn a total of 10.00 from holding V V Food or generate 3.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Gansu Jiu Steel vs. V V Food
Performance |
Timeline |
Gansu Jiu Steel |
V V Food |
Gansu Jiu and V V Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gansu Jiu and V V
The main advantage of trading using opposite Gansu Jiu and V V positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Jiu position performs unexpectedly, V V 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 V V will offset losses from the drop in V V's long position.Gansu Jiu vs. Guangzhou Seagull Kitchen | Gansu Jiu vs. Western Metal Materials | Gansu Jiu vs. Chahua Modern Housewares | Gansu Jiu vs. China Building Material |
V V vs. China Asset Management | V V vs. Songz Automobile Air | V V vs. Innovative Medical Management | V V vs. Harvest Fund Management |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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