Correlation Between Guocheng Mining and Beijing Bewinner
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By analyzing existing cross correlation between Guocheng Mining Co and Beijing Bewinner Communications, you can compare the effects of market volatilities on Guocheng Mining and Beijing Bewinner 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 Beijing Bewinner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Beijing Bewinner.
Diversification Opportunities for Guocheng Mining and Beijing Bewinner
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guocheng and Beijing is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Beijing Bewinner Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bewinner Com 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 Beijing Bewinner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bewinner Com has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Beijing Bewinner go up and down completely randomly.
Pair Corralation between Guocheng Mining and Beijing Bewinner
Assuming the 90 days trading horizon Guocheng Mining is expected to generate 28.14 times less return on investment than Beijing Bewinner. But when comparing it to its historical volatility, Guocheng Mining Co is 1.15 times less risky than Beijing Bewinner. It trades about 0.0 of its potential returns per unit of risk. Beijing Bewinner Communications is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 502.00 in Beijing Bewinner Communications on September 12, 2024 and sell it today you would earn a total of 159.00 from holding Beijing Bewinner Communications or generate 31.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Beijing Bewinner Communication
Performance |
| Timeline |
| Guocheng Mining |
| Beijing Bewinner Com |
Guocheng Mining and Beijing Bewinner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Beijing Bewinner
The main advantage of trading using opposite Guocheng Mining and Beijing Bewinner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Beijing Bewinner 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 Beijing Bewinner will offset losses from the drop in Beijing Bewinner's long position.| Guocheng Mining vs. Agricultural Bank of | Guocheng Mining vs. Industrial and Commercial | Guocheng Mining vs. Bank of China | Guocheng Mining vs. PetroChina Co Ltd |
| Beijing Bewinner vs. Focus Media Information | Beijing Bewinner vs. Guocheng Mining Co | Beijing Bewinner vs. JiShi Media Co | Beijing Bewinner vs. Ye Chiu Metal |
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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