Correlation Between Guocheng Mining and North Copper
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By analyzing existing cross correlation between Guocheng Mining Co and North Copper Shanxi, you can compare the effects of market volatilities on Guocheng Mining and North Copper 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 North Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and North Copper.
Diversification Opportunities for Guocheng Mining and North Copper
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guocheng and North is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and North Copper Shanxi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Copper Shanxi 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 North Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Copper Shanxi has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and North Copper go up and down completely randomly.
Pair Corralation between Guocheng Mining and North Copper
Assuming the 90 days trading horizon Guocheng Mining Co is expected to under-perform the North Copper. But the stock apears to be less risky and, when comparing its historical volatility, Guocheng Mining Co is 1.3 times less risky than North Copper. The stock trades about -0.2 of its potential returns per unit of risk. The North Copper Shanxi is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 816.00 in North Copper Shanxi on October 24, 2024 and sell it today you would earn a total of 107.00 from holding North Copper Shanxi or generate 13.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. North Copper Shanxi
Performance |
| Timeline |
| Guocheng Mining |
| North Copper Shanxi |
Guocheng Mining and North Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and North Copper
The main advantage of trading using opposite Guocheng Mining and North Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, North Copper 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 North Copper will offset losses from the drop in North Copper's long position.| Guocheng Mining vs. Caihong Display Devices | Guocheng Mining vs. Jiangsu Jinling Sports | Guocheng Mining vs. Ningbo Fujia Industrial | Guocheng Mining vs. Zhengzhou Coal Mining |
| North Copper vs. Shanghai Newtouch Software | North Copper vs. Sharetronic Data Technology | North Copper vs. Dhc Software Co | North Copper vs. Digiwin Software 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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