Correlation Between Guocheng Mining and Harbin Air
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guocheng Mining Co and Harbin Air Conditioning, you can compare the effects of market volatilities on Guocheng Mining and Harbin Air 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 Harbin Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Harbin Air.
Diversification Opportunities for Guocheng Mining and Harbin Air
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guocheng and Harbin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Harbin Air Conditioning in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbin Air Conditioning 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 Harbin Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbin Air Conditioning has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Harbin Air go up and down completely randomly.
Pair Corralation between Guocheng Mining and Harbin Air
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.9 times more return on investment than Harbin Air. However, Guocheng Mining is 1.9 times more volatile than Harbin Air Conditioning. It trades about 0.16 of its potential returns per unit of risk. Harbin Air Conditioning is currently generating about 0.02 per unit of risk. If you would invest 1,244 in Guocheng Mining Co on August 27, 2024 and sell it today you would earn a total of 151.00 from holding Guocheng Mining Co or generate 12.14% 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. Harbin Air Conditioning
Performance |
| Timeline |
| Guocheng Mining |
| Harbin Air Conditioning |
Guocheng Mining and Harbin Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Harbin Air
The main advantage of trading using opposite Guocheng Mining and Harbin Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Harbin Air 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 Harbin Air will offset losses from the drop in Harbin Air's long position.| Guocheng Mining vs. Industrial and Commercial | Guocheng Mining vs. Agricultural Bank of | Guocheng Mining vs. China Construction Bank | Guocheng Mining vs. Bank of China |
| Harbin Air vs. Agricultural Bank of | Harbin Air vs. Industrial and Commercial | Harbin Air vs. Bank of China | Harbin Air vs. China Construction Bank |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |