Correlation Between Guocheng Mining and XiaMen HongXin
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By analyzing existing cross correlation between Guocheng Mining Co and XiaMen HongXin Electron tech, you can compare the effects of market volatilities on Guocheng Mining and XiaMen HongXin 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 XiaMen HongXin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and XiaMen HongXin.
Diversification Opportunities for Guocheng Mining and XiaMen HongXin
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guocheng and XiaMen is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and XiaMen HongXin Electron tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XiaMen HongXin Electron 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 XiaMen HongXin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XiaMen HongXin Electron has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and XiaMen HongXin go up and down completely randomly.
Pair Corralation between Guocheng Mining and XiaMen HongXin
Assuming the 90 days trading horizon Guocheng Mining Co is expected to under-perform the XiaMen HongXin. But the stock apears to be less risky and, when comparing its historical volatility, Guocheng Mining Co is 1.52 times less risky than XiaMen HongXin. The stock trades about -0.02 of its potential returns per unit of risk. The XiaMen HongXin Electron tech is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,189 in XiaMen HongXin Electron tech on October 13, 2024 and sell it today you would earn a total of 752.00 from holding XiaMen HongXin Electron tech or generate 63.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. XiaMen HongXin Electron tech
Performance |
| Timeline |
| Guocheng Mining |
| XiaMen HongXin Electron |
Guocheng Mining and XiaMen HongXin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and XiaMen HongXin
The main advantage of trading using opposite Guocheng Mining and XiaMen HongXin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, XiaMen HongXin 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 XiaMen HongXin will offset losses from the drop in XiaMen HongXin's long position.| Guocheng Mining vs. Nuode Investment Co | Guocheng Mining vs. Beijing Mainstreets Investment | Guocheng Mining vs. RoadMain T Co | Guocheng Mining vs. Shenzhen Centralcon Investment |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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