Correlation Between Guocheng Mining and Shanghai Yanpu
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By analyzing existing cross correlation between Guocheng Mining Co and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Guocheng Mining and Shanghai Yanpu 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 Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Shanghai Yanpu.
Diversification Opportunities for Guocheng Mining and Shanghai Yanpu
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guocheng and Shanghai is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Shanghai Yanpu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yanpu Metal 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 Shanghai Yanpu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yanpu Metal has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Guocheng Mining and Shanghai Yanpu
Assuming the 90 days trading horizon Guocheng Mining is expected to generate 11.35 times less return on investment than Shanghai Yanpu. But when comparing it to its historical volatility, Guocheng Mining Co is 3.13 times less risky than Shanghai Yanpu. It trades about 0.12 of its potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 3,627 in Shanghai Yanpu Metal on November 27, 2024 and sell it today you would earn a total of 883.00 from holding Shanghai Yanpu Metal or generate 24.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| Guocheng Mining |
| Shanghai Yanpu Metal |
Guocheng Mining and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Shanghai Yanpu
The main advantage of trading using opposite Guocheng Mining and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Shanghai Yanpu 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 Shanghai Yanpu will offset losses from the drop in Shanghai Yanpu's long position.| Guocheng Mining vs. Suofeiya Home Collection | Guocheng Mining vs. Nanjing OLO Home | Guocheng Mining vs. Fiberhome Telecommunication Technologies | Guocheng Mining vs. Beijing Bewinner Communications |
| Shanghai Yanpu vs. Bangyan Technology Co | Shanghai Yanpu vs. Guangzhou KingTeller Technology | Shanghai Yanpu vs. Nantong JiangTian Chemical | Shanghai Yanpu vs. Hengyi Petrochemical Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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