Correlation Between Guocheng Mining and Xiangyang Automobile
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By analyzing existing cross correlation between Guocheng Mining Co and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Guocheng Mining and Xiangyang Automobile 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 Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Xiangyang Automobile.
Diversification Opportunities for Guocheng Mining and Xiangyang Automobile
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guocheng and Xiangyang is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile 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 Xiangyang Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyang Automobile has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Guocheng Mining and Xiangyang Automobile
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.08 times more return on investment than Xiangyang Automobile. However, Guocheng Mining is 1.08 times more volatile than Xiangyang Automobile Bearing. It trades about 0.2 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about 0.07 per unit of risk. If you would invest 1,192 in Guocheng Mining Co on September 4, 2024 and sell it today you would earn a total of 197.00 from holding Guocheng Mining Co or generate 16.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Xiangyang Automobile Bearing
Performance |
| Timeline |
| Guocheng Mining |
| Xiangyang Automobile |
Guocheng Mining and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Xiangyang Automobile
The main advantage of trading using opposite Guocheng Mining and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Xiangyang Automobile 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 Xiangyang Automobile will offset losses from the drop in Xiangyang Automobile's long position.| Guocheng Mining vs. Xiangyang Automobile Bearing | Guocheng Mining vs. Xizi Clean Energy | Guocheng Mining vs. Elite Color Environmental | Guocheng Mining vs. Iat Automobile Technology |
| Xiangyang Automobile vs. Cultural Investment Holdings | Xiangyang Automobile vs. Gome Telecom Equipment | Xiangyang Automobile vs. Bus Online Co | Xiangyang Automobile vs. Holitech Technology Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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