Correlation Between Guocheng Mining and Zhejiang Construction
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By analyzing existing cross correlation between Guocheng Mining Co and Zhejiang Construction Investment, you can compare the effects of market volatilities on Guocheng Mining and Zhejiang Construction 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 Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Zhejiang Construction.
Diversification Opportunities for Guocheng Mining and Zhejiang Construction
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guocheng and Zhejiang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction 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 Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Zhejiang Construction go up and down completely randomly.
Pair Corralation between Guocheng Mining and Zhejiang Construction
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 0.91 times more return on investment than Zhejiang Construction. However, Guocheng Mining Co is 1.1 times less risky than Zhejiang Construction. It trades about -0.01 of its potential returns per unit of risk. Zhejiang Construction Investment is currently generating about -0.03 per unit of risk. If you would invest 1,770 in Guocheng Mining Co on August 30, 2024 and sell it today you would lose (424.00) from holding Guocheng Mining Co or give up 23.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.74% |
| Values | Daily Returns |
Guocheng Mining Co vs. Zhejiang Construction Investme
Performance |
| Timeline |
| Guocheng Mining |
| Zhejiang Construction |
Guocheng Mining and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Zhejiang Construction
The main advantage of trading using opposite Guocheng Mining and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Zhejiang Construction 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction's long position.| Guocheng Mining vs. Uroica Mining Safety | Guocheng Mining vs. Chenzhou Jingui Silver | Guocheng Mining vs. Zhengzhou Coal Mining | Guocheng Mining vs. Shenyang Blue Silver |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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