Correlation Between Guocheng Mining and Xingguang Agricultural
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By analyzing existing cross correlation between Guocheng Mining Co and Xingguang Agricultural Mach, you can compare the effects of market volatilities on Guocheng Mining and Xingguang Agricultural 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 Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Xingguang Agricultural.
Diversification Opportunities for Guocheng Mining and Xingguang Agricultural
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guocheng and Xingguang is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural 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 Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between Guocheng Mining and Xingguang Agricultural
Assuming the 90 days trading horizon Guocheng Mining Co is expected to under-perform the Xingguang Agricultural. But the stock apears to be less risky and, when comparing its historical volatility, Guocheng Mining Co is 1.25 times less risky than Xingguang Agricultural. The stock trades about -0.02 of its potential returns per unit of risk. The Xingguang Agricultural Mach is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 958.00 in Xingguang Agricultural Mach on October 31, 2024 and sell it today you would lose (363.00) from holding Xingguang Agricultural Mach or give up 37.89% 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. Xingguang Agricultural Mach
Performance |
| Timeline |
| Guocheng Mining |
| Xingguang Agricultural |
Guocheng Mining and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Xingguang Agricultural
The main advantage of trading using opposite Guocheng Mining and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural's long position.| Guocheng Mining vs. Guangdong Ellington Electronics | Guocheng Mining vs. Jilin Jlu Communication | Guocheng Mining vs. Nanjing Putian Telecommunications | Guocheng Mining vs. Jiangxi Hengda Hi Tech |
| Xingguang Agricultural vs. China Petroleum Chemical | Xingguang Agricultural vs. PetroChina Co Ltd | Xingguang Agricultural vs. China State Construction | Xingguang Agricultural vs. China Railway Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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