Correlation Between Guocheng Mining and Chongqing Landai
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By analyzing existing cross correlation between Guocheng Mining Co and Chongqing Landai Powertrain, you can compare the effects of market volatilities on Guocheng Mining and Chongqing Landai 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 Chongqing Landai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Chongqing Landai.
Diversification Opportunities for Guocheng Mining and Chongqing Landai
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guocheng and Chongqing is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Chongqing Landai Powertrain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Landai Pow 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 Chongqing Landai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Landai Pow has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Chongqing Landai go up and down completely randomly.
Pair Corralation between Guocheng Mining and Chongqing Landai
Assuming the 90 days trading horizon Guocheng Mining Co is expected to under-perform the Chongqing Landai. But the stock apears to be less risky and, when comparing its historical volatility, Guocheng Mining Co is 1.16 times less risky than Chongqing Landai. The stock trades about -0.01 of its potential returns per unit of risk. The Chongqing Landai Powertrain is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 987.00 in Chongqing Landai Powertrain on August 27, 2024 and sell it today you would lose (118.00) from holding Chongqing Landai Powertrain or give up 11.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Chongqing Landai Powertrain
Performance |
| Timeline |
| Guocheng Mining |
| Chongqing Landai Pow |
Guocheng Mining and Chongqing Landai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Chongqing Landai
The main advantage of trading using opposite Guocheng Mining and Chongqing Landai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Chongqing Landai 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 Chongqing Landai will offset losses from the drop in Chongqing Landai's long position.| Guocheng Mining vs. Industrial and Commercial | Guocheng Mining vs. Agricultural Bank of | Guocheng Mining vs. China Construction Bank | Guocheng Mining vs. Bank of China |
| Chongqing Landai vs. Rising Nonferrous Metals | Chongqing Landai vs. Shengda Mining Co | Chongqing Landai vs. Guocheng Mining Co | Chongqing Landai vs. CITIC Metal Co |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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