Correlation Between Guocheng Mining and Beijing HuaYuanYiTong
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By analyzing existing cross correlation between Guocheng Mining Co and Beijing HuaYuanYiTong Thermal, you can compare the effects of market volatilities on Guocheng Mining and Beijing HuaYuanYiTong 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 HuaYuanYiTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Beijing HuaYuanYiTong.
Diversification Opportunities for Guocheng Mining and Beijing HuaYuanYiTong
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guocheng and Beijing is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Beijing HuaYuanYiTong Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing HuaYuanYiTong 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 HuaYuanYiTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing HuaYuanYiTong has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Beijing HuaYuanYiTong go up and down completely randomly.
Pair Corralation between Guocheng Mining and Beijing HuaYuanYiTong
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.28 times more return on investment than Beijing HuaYuanYiTong. However, Guocheng Mining is 1.28 times more volatile than Beijing HuaYuanYiTong Thermal. It trades about 0.24 of its potential returns per unit of risk. Beijing HuaYuanYiTong Thermal is currently generating about 0.09 per unit of risk. If you would invest 1,262 in Guocheng Mining Co on September 13, 2024 and sell it today you would earn a total of 268.00 from holding Guocheng Mining Co or generate 21.24% 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 HuaYuanYiTong Thermal
Performance |
| Timeline |
| Guocheng Mining |
| Beijing HuaYuanYiTong |
Guocheng Mining and Beijing HuaYuanYiTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Beijing HuaYuanYiTong
The main advantage of trading using opposite Guocheng Mining and Beijing HuaYuanYiTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Beijing HuaYuanYiTong 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 HuaYuanYiTong will offset losses from the drop in Beijing HuaYuanYiTong's long position.| Guocheng Mining vs. Cambricon Technologies Corp | Guocheng Mining vs. Loongson Technology Corp | Guocheng Mining vs. Shenzhen Fortune Trend | Guocheng Mining vs. Chongqing Road Bridge |
| Beijing HuaYuanYiTong vs. Ming Yang Smart | Beijing HuaYuanYiTong vs. 159681 | Beijing HuaYuanYiTong vs. 159005 | Beijing HuaYuanYiTong vs. Loctek Ergonomic 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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