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
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guocheng and China is 0.76. 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 under-perform the China Nonferrous. In addition to that, Guocheng Mining is 2.54 times more volatile than China Nonferrous Metal. It trades about -0.02 of its total potential returns per unit of risk. China Nonferrous Metal is currently generating about -0.04 per unit of volatility. If you would invest 527.00 in China Nonferrous Metal on December 10, 2024 and sell it today you would lose (17.00) from holding China Nonferrous Metal or give up 3.23% of portfolio value 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. JCHX Mining Management | Guocheng Mining vs. Hainan Mining Co | Guocheng Mining vs. Guobo Electronics Co | Guocheng Mining vs. Shengda Mining Co |
China Nonferrous vs. Baoding Dongli Machinery | China Nonferrous vs. Shaanxi Construction Machinery | China Nonferrous vs. Hunan Tyen Machinery | China Nonferrous vs. Hangzhou Zhongya Machinery |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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