Correlation Between Guocheng Mining and Tianjin Realty
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By analyzing existing cross correlation between Guocheng Mining Co and Tianjin Realty Development, you can compare the effects of market volatilities on Guocheng Mining and Tianjin Realty 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 Tianjin Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Tianjin Realty.
Diversification Opportunities for Guocheng Mining and Tianjin Realty
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guocheng and Tianjin is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Tianjin Realty Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Realty Devel 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 Tianjin Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Realty Devel has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Tianjin Realty go up and down completely randomly.
Pair Corralation between Guocheng Mining and Tianjin Realty
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 0.8 times more return on investment than Tianjin Realty. However, Guocheng Mining Co is 1.25 times less risky than Tianjin Realty. It trades about 0.05 of its potential returns per unit of risk. Tianjin Realty Development is currently generating about 0.02 per unit of risk. If you would invest 1,028 in Guocheng Mining Co on August 26, 2024 and sell it today you would earn a total of 335.00 from holding Guocheng Mining Co or generate 32.59% 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. Tianjin Realty Development
Performance |
| Timeline |
| Guocheng Mining |
| Tianjin Realty Devel |
Guocheng Mining and Tianjin Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Tianjin Realty
The main advantage of trading using opposite Guocheng Mining and Tianjin Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Tianjin Realty 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 Tianjin Realty will offset losses from the drop in Tianjin Realty'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 |
| Tianjin Realty vs. Minmetals Capital Co | Tianjin Realty vs. Hengdian Entertainment Co | Tianjin Realty vs. Guocheng Mining Co | Tianjin Realty vs. Jinhui Liquor 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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