Correlation Between Chengdu Xingrong and Guocheng Mining
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Guocheng Mining Co, you can compare the effects of market volatilities on Chengdu Xingrong and Guocheng Mining 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 Chengdu Xingrong with a short position of Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Guocheng Mining.
Diversification Opportunities for Chengdu Xingrong and Guocheng Mining
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chengdu and Guocheng is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining and Chengdu Xingrong 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 Chengdu Xingrong Investment are associated (or correlated) with Guocheng Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guocheng Mining has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Guocheng Mining go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Guocheng Mining
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to generate 0.6 times more return on investment than Guocheng Mining. However, Chengdu Xingrong Investment is 1.66 times less risky than Guocheng Mining. It trades about 0.12 of its potential returns per unit of risk. Guocheng Mining Co is currently generating about -0.04 per unit of risk. If you would invest 688.00 in Chengdu Xingrong Investment on January 26, 2025 and sell it today you would earn a total of 29.00 from holding Chengdu Xingrong Investment or generate 4.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Guocheng Mining Co
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Guocheng Mining |
Chengdu Xingrong and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Guocheng Mining
The main advantage of trading using opposite Chengdu Xingrong and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Guocheng Mining 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 Guocheng Mining will offset losses from the drop in Guocheng Mining's long position.| Chengdu Xingrong vs. Fujian Wanchen Biotechnology | Chengdu Xingrong vs. Guangdong Shenglu Telecommunication | Chengdu Xingrong vs. Zotye Automobile Co | Chengdu Xingrong vs. Datang Telecom Technology |
| Guocheng Mining vs. Beijing Oriental Yuhong | Guocheng Mining vs. Shenzhen MYS Environmental | Guocheng Mining vs. Rongan Property Co | Guocheng Mining vs. AVIC 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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