Correlation Between Guocheng Mining and Kunwu Jiuding
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By analyzing existing cross correlation between Guocheng Mining Co and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Guocheng Mining and Kunwu Jiuding 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 Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Kunwu Jiuding.
Diversification Opportunities for Guocheng Mining and Kunwu Jiuding
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guocheng and Kunwu is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment 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 Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Guocheng Mining and Kunwu Jiuding
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.04 times more return on investment than Kunwu Jiuding. However, Guocheng Mining is 1.04 times more volatile than Kunwu Jiuding Investment. It trades about 0.11 of its potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about -0.03 per unit of risk. If you would invest 1,244 in Guocheng Mining Co on August 29, 2024 and sell it today you would earn a total of 102.00 from holding Guocheng Mining Co or generate 8.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| Guocheng Mining |
| Kunwu Jiuding Investment |
Guocheng Mining and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Kunwu Jiuding
The main advantage of trading using opposite Guocheng Mining and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's long position.| Guocheng Mining vs. Uroica Mining Safety | Guocheng Mining vs. Chenzhou Jingui Silver | Guocheng Mining vs. Zhengzhou Coal Mining | Guocheng Mining vs. Shenyang Blue Silver |
| Kunwu Jiuding vs. Heilongjiang Transport Development | Kunwu Jiuding vs. CITIC Metal Co | Kunwu Jiuding vs. Anhui Gujing Distillery | Kunwu Jiuding vs. Anhui Transport Consulting |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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