Correlation Between Jiangsu Yanghe and Guocheng Mining
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Guocheng Mining Co, you can compare the effects of market volatilities on Jiangsu Yanghe and Guocheng Mining 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 Jiangsu Yanghe with a short position of Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Guocheng Mining.
Diversification Opportunities for Jiangsu Yanghe and Guocheng Mining
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jiangsu and Guocheng is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining and Jiangsu Yanghe 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 Jiangsu Yanghe Brewery are associated (or correlated) with Guocheng Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guocheng Mining has no effect on the direction of Jiangsu Yanghe i.e., Jiangsu Yanghe and Guocheng Mining go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Guocheng Mining
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to generate 0.35 times more return on investment than Guocheng Mining. However, Jiangsu Yanghe Brewery is 2.89 times less risky than Guocheng Mining. It trades about -0.17 of its potential returns per unit of risk. Guocheng Mining Co is currently generating about -0.42 per unit of risk. If you would invest 8,367 in Jiangsu Yanghe Brewery on October 17, 2024 and sell it today you would lose (370.00) from holding Jiangsu Yanghe Brewery or give up 4.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yanghe Brewery vs. Guocheng Mining Co
Performance |
| Timeline |
| Jiangsu Yanghe Brewery |
| Guocheng Mining |
Jiangsu Yanghe and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yanghe and Guocheng Mining
The main advantage of trading using opposite Jiangsu Yanghe and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe position performs unexpectedly, Guocheng Mining 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 Guocheng Mining will offset losses from the drop in Guocheng Mining's long position.| Jiangsu Yanghe vs. Beijing Mainstreets Investment | Jiangsu Yanghe vs. Harbin Hatou Investment | Jiangsu Yanghe vs. Jinhe Biotechnology Co | Jiangsu Yanghe vs. Bloomage Biotechnology Corp |
| Guocheng Mining vs. Luyin Investment Group | Guocheng Mining vs. Fiberhome Telecommunication Technologies | Guocheng Mining vs. Beijing Bewinner Communications | Guocheng Mining vs. Jiangsu Yanghe Brewery |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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