Correlation Between Guocheng Mining and Guangxi Wuzhou
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By analyzing existing cross correlation between Guocheng Mining Co and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on Guocheng Mining and Guangxi Wuzhou 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 Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Guangxi Wuzhou.
Diversification Opportunities for Guocheng Mining and Guangxi Wuzhou
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guocheng and Guangxi is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou Commu 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 Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between Guocheng Mining and Guangxi Wuzhou
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.02 times more return on investment than Guangxi Wuzhou. However, Guocheng Mining is 1.02 times more volatile than Guangxi Wuzhou Communications. It trades about -0.06 of its potential returns per unit of risk. Guangxi Wuzhou Communications is currently generating about -0.18 per unit of risk. If you would invest 1,248 in Guocheng Mining Co on October 29, 2024 and sell it today you would lose (52.00) from holding Guocheng Mining Co or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Guangxi Wuzhou Communications
Performance |
| Timeline |
| Guocheng Mining |
| Guangxi Wuzhou Commu |
Guocheng Mining and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Guangxi Wuzhou
The main advantage of trading using opposite Guocheng Mining and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Guangxi Wuzhou 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 Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou's long position.| Guocheng Mining vs. Pengxin International Mining | Guocheng Mining vs. Western Metal Materials | Guocheng Mining vs. Shengda Mining Co | Guocheng Mining vs. Maoming Petro Chemical Shihua |
| Guangxi Wuzhou vs. Cabio Biotech Wuhan | Guangxi Wuzhou vs. Holitech Technology Co | Guangxi Wuzhou vs. Sharetronic Data Technology | Guangxi Wuzhou vs. Lander Sports Development |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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