Correlation Between Shanxi Xishan and GRG Banking
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By analyzing existing cross correlation between Shanxi Xishan Coal and GRG Banking Equipment, you can compare the effects of market volatilities on Shanxi Xishan and GRG Banking 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 Shanxi Xishan with a short position of GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanxi Xishan and GRG Banking.
Diversification Opportunities for Shanxi Xishan and GRG Banking
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanxi and GRG is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Shanxi Xishan Coal and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment and Shanxi Xishan 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 Shanxi Xishan Coal are associated (or correlated) with GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of Shanxi Xishan i.e., Shanxi Xishan and GRG Banking go up and down completely randomly.
Pair Corralation between Shanxi Xishan and GRG Banking
Assuming the 90 days trading horizon Shanxi Xishan is expected to generate 1.91 times less return on investment than GRG Banking. But when comparing it to its historical volatility, Shanxi Xishan Coal is 1.34 times less risky than GRG Banking. It trades about 0.14 of its potential returns per unit of risk. GRG Banking Equipment is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 913.00 in GRG Banking Equipment on September 13, 2024 and sell it today you would earn a total of 387.00 from holding GRG Banking Equipment or generate 42.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shanxi Xishan Coal vs. GRG Banking Equipment
Performance |
Timeline |
Shanxi Xishan Coal |
GRG Banking Equipment |
Shanxi Xishan and GRG Banking Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanxi Xishan and GRG Banking
The main advantage of trading using opposite Shanxi Xishan and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanxi Xishan position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking's long position.Shanxi Xishan vs. Tibet Huayu Mining | Shanxi Xishan vs. Guangdong Jingyi Metal | Shanxi Xishan vs. Jiangsu Xinri E Vehicle | Shanxi Xishan vs. Qingdao Choho Industrial |
GRG Banking vs. Industrial and Commercial | GRG Banking vs. China Construction Bank | GRG Banking vs. Bank of China | GRG Banking vs. Agricultural Bank of |
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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