Correlation Between Guocheng Mining and Shanghai Bailian
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By analyzing existing cross correlation between Guocheng Mining Co and Shanghai Bailian Group, you can compare the effects of market volatilities on Guocheng Mining and Shanghai Bailian 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 Bailian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Shanghai Bailian.
Diversification Opportunities for Guocheng Mining and Shanghai Bailian
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guocheng and Shanghai is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Shanghai Bailian Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Bailian 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 Bailian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Bailian has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Shanghai Bailian go up and down completely randomly.
Pair Corralation between Guocheng Mining and Shanghai Bailian
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.45 times more return on investment than Shanghai Bailian. However, Guocheng Mining is 1.45 times more volatile than Shanghai Bailian Group. It trades about 0.05 of its potential returns per unit of risk. Shanghai Bailian Group is currently generating about 0.05 per unit of risk. If you would invest 1,028 in Guocheng Mining Co on August 26, 2024 and sell it today you would earn a total of 335.00 from holding Guocheng Mining Co or generate 32.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Shanghai Bailian Group
Performance |
| Timeline |
| Guocheng Mining |
| Shanghai Bailian |
Guocheng Mining and Shanghai Bailian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Shanghai Bailian
The main advantage of trading using opposite Guocheng Mining and Shanghai Bailian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Shanghai Bailian 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 Bailian will offset losses from the drop in Shanghai Bailian's long position.| Guocheng Mining vs. Industrial and Commercial | Guocheng Mining vs. Agricultural Bank of | Guocheng Mining vs. China Construction Bank | Guocheng Mining vs. Bank of China |
| Shanghai Bailian vs. Nantong Jiangshan Agrochemical | Shanghai Bailian vs. Ningxia Younglight Chemicals | Shanghai Bailian vs. Time Publishing and | Shanghai Bailian vs. Juneyao Airlines |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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