Correlation Between Shenyang Blue and Guocheng Mining
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By analyzing existing cross correlation between Shenyang Blue Silver and Guocheng Mining Co, you can compare the effects of market volatilities on Shenyang Blue 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 Shenyang Blue with a short position of Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Blue and Guocheng Mining.
Diversification Opportunities for Shenyang Blue and Guocheng Mining
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and Guocheng is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Blue Silver and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining and Shenyang Blue 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 Shenyang Blue Silver 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 Shenyang Blue i.e., Shenyang Blue and Guocheng Mining go up and down completely randomly.
Pair Corralation between Shenyang Blue and Guocheng Mining
Assuming the 90 days trading horizon Shenyang Blue Silver is expected to generate 1.63 times more return on investment than Guocheng Mining. However, Shenyang Blue is 1.63 times more volatile than Guocheng Mining Co. It trades about 0.12 of its potential returns per unit of risk. Guocheng Mining Co is currently generating about 0.05 per unit of risk. If you would invest 1,527 in Shenyang Blue Silver on September 1, 2024 and sell it today you would earn a total of 1,198 from holding Shenyang Blue Silver or generate 78.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Blue Silver vs. Guocheng Mining Co
Performance |
| Timeline |
| Shenyang Blue Silver |
| Guocheng Mining |
Shenyang Blue and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Blue and Guocheng Mining
The main advantage of trading using opposite Shenyang Blue and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Blue 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.| Shenyang Blue vs. Kuangda Technology Group | Shenyang Blue vs. Sinofibers Technology Co | Shenyang Blue vs. China World Trade | Shenyang Blue vs. Changchun UP Optotech |
| Guocheng Mining vs. Kweichow Moutai Co | Guocheng Mining vs. Contemporary Amperex Technology | Guocheng Mining vs. G bits Network Technology | Guocheng Mining vs. BYD Co Ltd |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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