Correlation Between Guocheng Mining and Anhui Tongguan
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By analyzing existing cross correlation between Guocheng Mining Co and Anhui Tongguan Copper, you can compare the effects of market volatilities on Guocheng Mining and Anhui Tongguan 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 Anhui Tongguan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Anhui Tongguan.
Diversification Opportunities for Guocheng Mining and Anhui Tongguan
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guocheng and Anhui is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Anhui Tongguan Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Tongguan Copper 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 Anhui Tongguan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Tongguan Copper has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Anhui Tongguan go up and down completely randomly.
Pair Corralation between Guocheng Mining and Anhui Tongguan
Assuming the 90 days trading horizon Guocheng Mining Co is expected to under-perform the Anhui Tongguan. But the stock apears to be less risky and, when comparing its historical volatility, Guocheng Mining Co is 1.02 times less risky than Anhui Tongguan. The stock trades about -0.01 of its potential returns per unit of risk. The Anhui Tongguan Copper is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,303 in Anhui Tongguan Copper on October 16, 2024 and sell it today you would lose (226.00) from holding Anhui Tongguan Copper or give up 17.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Anhui Tongguan Copper
Performance |
| Timeline |
| Guocheng Mining |
| Anhui Tongguan Copper |
Guocheng Mining and Anhui Tongguan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Anhui Tongguan
The main advantage of trading using opposite Guocheng Mining and Anhui Tongguan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Anhui Tongguan 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 Anhui Tongguan will offset losses from the drop in Anhui Tongguan's long position.| Guocheng Mining vs. Shandong Hongchuang Aluminum | Guocheng Mining vs. Tianjin Silvery Dragon | Guocheng Mining vs. Tianshan Aluminum Group | Guocheng Mining vs. Tongling Nonferrous Metals |
| Anhui Tongguan vs. Guocheng Mining Co | Anhui Tongguan vs. Do Fluoride Chemicals Co | Anhui Tongguan vs. Yingde Greatchem Chemicals | Anhui Tongguan vs. Shenyang Huitian Thermal |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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