Correlation Between Guocheng Mining and Henan Shuanghui
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By analyzing existing cross correlation between Guocheng Mining Co and Henan Shuanghui Investment, you can compare the effects of market volatilities on Guocheng Mining and Henan Shuanghui 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 Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Henan Shuanghui.
Diversification Opportunities for Guocheng Mining and Henan Shuanghui
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guocheng and Henan is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve 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 Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Guocheng Mining and Henan Shuanghui
Assuming the 90 days trading horizon Guocheng Mining Co is expected to under-perform the Henan Shuanghui. In addition to that, Guocheng Mining is 2.81 times more volatile than Henan Shuanghui Investment. It trades about -0.06 of its total potential returns per unit of risk. Henan Shuanghui Investment is currently generating about -0.13 per unit of volatility. If you would invest 2,615 in Henan Shuanghui Investment on October 29, 2024 and sell it today you would lose (72.00) from holding Henan Shuanghui Investment or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Henan Shuanghui Investment
Performance |
| Timeline |
| Guocheng Mining |
| Henan Shuanghui Inve |
Guocheng Mining and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Henan Shuanghui
The main advantage of trading using opposite Guocheng Mining and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| Guocheng Mining vs. Pengxin International Mining | Guocheng Mining vs. Western Metal Materials | Guocheng Mining vs. Shengda Mining Co | Guocheng Mining vs. Maoming Petro Chemical Shihua |
| Henan Shuanghui vs. Xiamen Jihong Package | Henan Shuanghui vs. Senci Electric Machinery | Henan Shuanghui vs. Fujian Anjoy Foods | Henan Shuanghui vs. Anhui Huilong Agricultural |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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