Correlation Between Guocheng Mining and Shandong Ruifeng
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By analyzing existing cross correlation between Guocheng Mining Co and Shandong Ruifeng Chemical, you can compare the effects of market volatilities on Guocheng Mining and Shandong Ruifeng 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 Shandong Ruifeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Shandong Ruifeng.
Diversification Opportunities for Guocheng Mining and Shandong Ruifeng
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guocheng and Shandong is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Shandong Ruifeng Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Ruifeng Chemical 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 Shandong Ruifeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Ruifeng Chemical has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Shandong Ruifeng go up and down completely randomly.
Pair Corralation between Guocheng Mining and Shandong Ruifeng
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.62 times more return on investment than Shandong Ruifeng. However, Guocheng Mining is 1.62 times more volatile than Shandong Ruifeng Chemical. It trades about 0.15 of its potential returns per unit of risk. Shandong Ruifeng Chemical is currently generating about 0.1 per unit of risk. If you would invest 1,112 in Guocheng Mining Co on November 4, 2024 and sell it today you would earn a total of 76.00 from holding Guocheng Mining Co or generate 6.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Shandong Ruifeng Chemical
Performance |
| Timeline |
| Guocheng Mining |
| Shandong Ruifeng Chemical |
Guocheng Mining and Shandong Ruifeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Shandong Ruifeng
The main advantage of trading using opposite Guocheng Mining and Shandong Ruifeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Shandong Ruifeng 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 Shandong Ruifeng will offset losses from the drop in Shandong Ruifeng's long position.| Guocheng Mining vs. Guangzhou Jinyi Media | Guocheng Mining vs. Xiangyang Automobile Bearing | Guocheng Mining vs. Anhui Jianghuai Automobile | Guocheng Mining vs. CIMC Vehicles Co |
| Shandong Ruifeng vs. Zijin Mining Group | Shandong Ruifeng vs. Wanhua Chemical Group | Shandong Ruifeng vs. Baoshan Iron Steel | Shandong Ruifeng vs. Shandong Gold Mining |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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