Correlation Between Guocheng Mining and Changchun Engley
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By analyzing existing cross correlation between Guocheng Mining Co and Changchun Engley Automobile, you can compare the effects of market volatilities on Guocheng Mining and Changchun Engley 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 Changchun Engley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Changchun Engley.
Diversification Opportunities for Guocheng Mining and Changchun Engley
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guocheng and Changchun is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Changchun Engley Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Engley Aut 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 Changchun Engley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Engley Aut has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Changchun Engley go up and down completely randomly.
Pair Corralation between Guocheng Mining and Changchun Engley
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.28 times more return on investment than Changchun Engley. However, Guocheng Mining is 1.28 times more volatile than Changchun Engley Automobile. It trades about 0.12 of its potential returns per unit of risk. Changchun Engley Automobile is currently generating about 0.06 per unit of risk. If you would invest 888.00 in Guocheng Mining Co on October 18, 2024 and sell it today you would earn a total of 355.00 from holding Guocheng Mining Co or generate 39.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Changchun Engley Automobile
Performance |
| Timeline |
| Guocheng Mining |
| Changchun Engley Aut |
Guocheng Mining and Changchun Engley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Changchun Engley
The main advantage of trading using opposite Guocheng Mining and Changchun Engley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Changchun Engley 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 Changchun Engley will offset losses from the drop in Changchun Engley's long position.| Guocheng Mining vs. Luyin Investment Group | Guocheng Mining vs. Fiberhome Telecommunication Technologies | Guocheng Mining vs. Beijing Bewinner Communications | Guocheng Mining vs. Jiangsu Yanghe Brewery |
| Changchun Engley vs. Hainan Mining Co | Changchun Engley vs. Andon Health Co | Changchun Engley vs. Guocheng Mining Co | Changchun Engley vs. Tianjin Silvery Dragon |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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