Correlation Between Guocheng Mining and China Railway
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By analyzing existing cross correlation between Guocheng Mining Co and China Railway Group, you can compare the effects of market volatilities on Guocheng Mining and China Railway 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 China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and China Railway.
Diversification Opportunities for Guocheng Mining and China Railway
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guocheng and China is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and China Railway Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Group 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 China Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Railway Group has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and China Railway go up and down completely randomly.
Pair Corralation between Guocheng Mining and China Railway
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 2.33 times more return on investment than China Railway. However, Guocheng Mining is 2.33 times more volatile than China Railway Group. It trades about 0.0 of its potential returns per unit of risk. China Railway Group is currently generating about -0.13 per unit of risk. If you would invest 1,237 in Guocheng Mining Co on November 6, 2024 and sell it today you would lose (49.00) from holding Guocheng Mining Co or give up 3.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. China Railway Group
Performance |
| Timeline |
| Guocheng Mining |
| China Railway Group |
Guocheng Mining and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and China Railway
The main advantage of trading using opposite Guocheng Mining and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, China Railway 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 China Railway will offset losses from the drop in China Railway's long position.| Guocheng Mining vs. Servyou Software Group | Guocheng Mining vs. Changzhou Evergreen Technology | Guocheng Mining vs. Kailong High Technology | Guocheng Mining vs. Jiujiang Shanshui Technology |
| China Railway vs. Jiangsu Jinling Sports | China Railway vs. Beijing Kaiwen Education | China Railway vs. Caihong Display Devices | China Railway vs. Jiangsu Phoenix Publishing |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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