Correlation Between Guocheng Mining and China Nonferrous
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By analyzing existing cross correlation between Guocheng Mining Co and China Nonferrous Metal, you can compare the effects of market volatilities on Guocheng Mining and China Nonferrous 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 Guocheng Mining with a short position of China Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and China Nonferrous.
Diversification Opportunities for Guocheng Mining and China Nonferrous
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guocheng and China is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and China Nonferrous Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Nonferrous Metal and Guocheng Mining 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 Guocheng Mining Co are associated (or correlated) with China Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Nonferrous Metal has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and China Nonferrous go up and down completely randomly.
Pair Corralation between Guocheng Mining and China Nonferrous
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.47 times more return on investment than China Nonferrous. However, Guocheng Mining is 1.47 times more volatile than China Nonferrous Metal. It trades about 0.2 of its potential returns per unit of risk. China Nonferrous Metal is currently generating about 0.14 per unit of risk. If you would invest 927.00 in Guocheng Mining Co on September 20, 2024 and sell it today you would earn a total of 547.00 from holding Guocheng Mining Co or generate 59.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Guocheng Mining Co vs. China Nonferrous Metal
Performance |
Timeline |
Guocheng Mining |
China Nonferrous Metal |
Guocheng Mining and China Nonferrous Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guocheng Mining and China Nonferrous
The main advantage of trading using opposite Guocheng Mining and China Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, China Nonferrous 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 China Nonferrous will offset losses from the drop in China Nonferrous' long position.Guocheng Mining vs. Cambricon Technologies Corp | Guocheng Mining vs. Loongson Technology Corp | Guocheng Mining vs. Shenzhen Fortune Trend | Guocheng Mining vs. Chongqing Road Bridge |
China Nonferrous vs. Zijin Mining Group | China Nonferrous vs. Wanhua Chemical Group | China Nonferrous vs. Baoshan Iron Steel | China Nonferrous vs. Shandong Gold Mining |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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