Correlation Between Guocheng Mining and Shenzhen MYS
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By analyzing existing cross correlation between Guocheng Mining Co and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Guocheng Mining and Shenzhen MYS 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 Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Shenzhen MYS.
Diversification Opportunities for Guocheng Mining and Shenzhen MYS
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guocheng and Shenzhen is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ 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 Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Guocheng Mining and Shenzhen MYS
Assuming the 90 days trading horizon Guocheng Mining Co is expected to under-perform the Shenzhen MYS. In addition to that, Guocheng Mining is 1.2 times more volatile than Shenzhen MYS Environmental. It trades about -0.01 of its total potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about 0.03 per unit of volatility. If you would invest 298.00 in Shenzhen MYS Environmental on September 28, 2024 and sell it today you would earn a total of 69.00 from holding Shenzhen MYS Environmental or generate 23.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Guocheng Mining Co vs. Shenzhen MYS Environmental
Performance |
| Timeline |
| Guocheng Mining |
| Shenzhen MYS Environ |
Guocheng Mining and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Shenzhen MYS
The main advantage of trading using opposite Guocheng Mining and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Shenzhen MYS 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 Shenzhen MYS will offset losses from the drop in Shenzhen MYS's long position.| Guocheng Mining vs. China State Construction | Guocheng Mining vs. Poly Real Estate | Guocheng Mining vs. China Vanke Co | Guocheng Mining vs. China Merchants Shekou |
| Shenzhen MYS vs. Guocheng Mining Co | Shenzhen MYS vs. Zhengzhou Coal Mining | Shenzhen MYS vs. Chenzhou Jingui Silver | Shenzhen MYS vs. Qingdao Hi Tech Moulds |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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