Correlation Between Guocheng Mining and Jiujiang Shanshui
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By analyzing existing cross correlation between Guocheng Mining Co and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Guocheng Mining and Jiujiang Shanshui 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 Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Jiujiang Shanshui.
Diversification Opportunities for Guocheng Mining and Jiujiang Shanshui
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guocheng and Jiujiang is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui 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 Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Guocheng Mining and Jiujiang Shanshui
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.22 times more return on investment than Jiujiang Shanshui. However, Guocheng Mining is 1.22 times more volatile than Jiujiang Shanshui Technology. It trades about 0.07 of its potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about 0.0 per unit of risk. If you would invest 987.00 in Guocheng Mining Co on September 12, 2024 and sell it today you would earn a total of 543.00 from holding Guocheng Mining Co or generate 55.02% 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. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Guocheng Mining |
| Jiujiang Shanshui |
Guocheng Mining and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Jiujiang Shanshui
The main advantage of trading using opposite Guocheng Mining and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui's long position.| Guocheng Mining vs. Agricultural Bank of | Guocheng Mining vs. Industrial and Commercial | Guocheng Mining vs. Bank of China | Guocheng Mining vs. PetroChina Co Ltd |
| Jiujiang Shanshui vs. Zijin Mining Group | Jiujiang Shanshui vs. Wanhua Chemical Group | Jiujiang Shanshui vs. Baoshan Iron Steel | Jiujiang Shanshui vs. Rongsheng Petrochemical 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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