Correlation Between Guocheng Mining and Hua Xia
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By analyzing existing cross correlation between Guocheng Mining Co and Hua Xia Bank, you can compare the effects of market volatilities on Guocheng Mining and Hua Xia 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 Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Hua Xia.
Diversification Opportunities for Guocheng Mining and Hua Xia
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guocheng and Hua is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank 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 Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Hua Xia go up and down completely randomly.
Pair Corralation between Guocheng Mining and Hua Xia
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 2.29 times more return on investment than Hua Xia. However, Guocheng Mining is 2.29 times more volatile than Hua Xia Bank. It trades about 0.1 of its potential returns per unit of risk. Hua Xia Bank is currently generating about -0.09 per unit of risk. If you would invest 1,140 in Guocheng Mining Co on November 3, 2024 and sell it today you would earn a total of 48.00 from holding Guocheng Mining Co or generate 4.21% 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. Hua Xia Bank
Performance |
| Timeline |
| Guocheng Mining |
| Hua Xia Bank |
Guocheng Mining and Hua Xia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Hua Xia
The main advantage of trading using opposite Guocheng Mining and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia's long position.| Guocheng Mining vs. Bank of Communications | Guocheng Mining vs. Xiangyang Automobile Bearing | Guocheng Mining vs. Wuhan Yangtze Communication | Guocheng Mining vs. Jilin Jlu Communication |
| Hua Xia vs. Touchstone International Medical | Hua Xia vs. Chison Medical Technologies | Hua Xia vs. Shenzhen SDG Information | Hua Xia vs. Northking Information Technology |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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