Correlation Between China Nonferrous and Geron
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By analyzing existing cross correlation between China Nonferrous Metal and Geron Co, you can compare the effects of market volatilities on China Nonferrous and Geron 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 China Nonferrous with a short position of Geron. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Nonferrous and Geron.
Diversification Opportunities for China Nonferrous and Geron
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Geron is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding China Nonferrous Metal and Geron Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geron and China Nonferrous 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 China Nonferrous Metal are associated (or correlated) with Geron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geron has no effect on the direction of China Nonferrous i.e., China Nonferrous and Geron go up and down completely randomly.
Pair Corralation between China Nonferrous and Geron
Assuming the 90 days trading horizon China Nonferrous Metal is expected to under-perform the Geron. But the stock apears to be less risky and, when comparing its historical volatility, China Nonferrous Metal is 2.86 times less risky than Geron. The stock trades about -0.03 of its potential returns per unit of risk. The Geron Co is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,497 in Geron Co on September 14, 2024 and sell it today you would earn a total of 238.00 from holding Geron Co or generate 15.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Nonferrous Metal vs. Geron Co
Performance |
| Timeline |
| China Nonferrous Metal |
| Geron |
China Nonferrous and Geron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Nonferrous and Geron
The main advantage of trading using opposite China Nonferrous and Geron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Nonferrous position performs unexpectedly, Geron 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 Geron will offset losses from the drop in Geron's long position.| China Nonferrous vs. Zijin Mining Group | China Nonferrous vs. Wanhua Chemical Group | China Nonferrous vs. Baoshan Iron Steel | China Nonferrous vs. Shandong Gold Mining |
| Geron vs. CSSC Offshore Marine | Geron vs. Jilin Jlu Communication | Geron vs. Guocheng Mining Co | Geron vs. China Nonferrous Metal |
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 Stocks Directory module to find actively traded stocks across global markets.
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