Correlation Between Guocheng Mining and Zhejiang Yayi
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By analyzing existing cross correlation between Guocheng Mining Co and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Guocheng Mining and Zhejiang Yayi 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 Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Zhejiang Yayi.
Diversification Opportunities for Guocheng Mining and Zhejiang Yayi
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guocheng and Zhejiang is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Zhejiang Yayi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yayi Metal 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 Yayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yayi Metal has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Guocheng Mining and Zhejiang Yayi
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.93 times more return on investment than Zhejiang Yayi. However, Guocheng Mining is 1.93 times more volatile than Zhejiang Yayi Metal. It trades about 0.24 of its potential returns per unit of risk. Zhejiang Yayi Metal is currently generating about 0.07 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. Zhejiang Yayi Metal
Performance |
| Timeline |
| Guocheng Mining |
| Zhejiang Yayi Metal |
Guocheng Mining and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Zhejiang Yayi
The main advantage of trading using opposite Guocheng Mining and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Zhejiang Yayi 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 Yayi will offset losses from the drop in Zhejiang Yayi'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 |
| Zhejiang Yayi vs. Lutian Machinery Co | Zhejiang Yayi vs. China Longyuan Power | Zhejiang Yayi vs. PetroChina Co Ltd | Zhejiang Yayi vs. Bank of China |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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