Correlation Between Guocheng Mining and Hubeiyichang Transportation
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By analyzing existing cross correlation between Guocheng Mining Co and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Guocheng Mining and Hubeiyichang Transportation 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 Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Hubeiyichang Transportation.
Diversification Opportunities for Guocheng Mining and Hubeiyichang Transportation
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guocheng and Hubeiyichang is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation 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 Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Guocheng Mining and Hubeiyichang Transportation
Assuming the 90 days trading horizon Guocheng Mining Co is expected to under-perform the Hubeiyichang Transportation. In addition to that, Guocheng Mining is 1.63 times more volatile than Hubeiyichang Transportation Group. It trades about -0.02 of its total potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about 0.0 per unit of volatility. If you would invest 534.00 in Hubeiyichang Transportation Group on November 6, 2024 and sell it today you would lose (24.00) from holding Hubeiyichang Transportation Group or give up 4.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Guocheng Mining |
| Hubeiyichang Transportation |
Guocheng Mining and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Hubeiyichang Transportation
The main advantage of trading using opposite Guocheng Mining and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| Guocheng Mining vs. Servyou Software Group | Guocheng Mining vs. Changzhou Evergreen Technology | Guocheng Mining vs. Kailong High Technology | Guocheng Mining vs. Jiujiang Shanshui Technology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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