Correlation Between Guocheng Mining and Hainan Haiqi
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By analyzing existing cross correlation between Guocheng Mining Co and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Guocheng Mining and Hainan Haiqi 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 Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Hainan Haiqi.
Diversification Opportunities for Guocheng Mining and Hainan Haiqi
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guocheng and Hainan is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Hainan Haiqi Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Haiqi Transpo 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 Hainan Haiqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Haiqi Transpo has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Guocheng Mining and Hainan Haiqi
Assuming the 90 days trading horizon Guocheng Mining Co is expected to under-perform the Hainan Haiqi. But the stock apears to be less risky and, when comparing its historical volatility, Guocheng Mining Co is 1.03 times less risky than Hainan Haiqi. The stock trades about -0.02 of its potential returns per unit of risk. The Hainan Haiqi Transportation is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 2,521 in Hainan Haiqi Transportation on October 14, 2024 and sell it today you would lose (875.00) from holding Hainan Haiqi Transportation or give up 34.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Guocheng Mining |
| Hainan Haiqi Transpo |
Guocheng Mining and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Hainan Haiqi
The main advantage of trading using opposite Guocheng Mining and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Hainan Haiqi 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 Hainan Haiqi will offset losses from the drop in Hainan Haiqi's long position.| Guocheng Mining vs. Anhui Shiny Electronic | Guocheng Mining vs. YiDong Electronics Technology | Guocheng Mining vs. Shenzhen Zhongzhuang Construction | Guocheng Mining vs. Xinya Electronic Co |
| Hainan Haiqi vs. Rising Nonferrous Metals | Hainan Haiqi vs. Shenzhen Topway Video | Hainan Haiqi vs. Guocheng Mining Co | Hainan Haiqi vs. Pengxin International Mining |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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