Correlation Between Jiangsu Jinling and Guocheng Mining
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Guocheng Mining Co, you can compare the effects of market volatilities on Jiangsu Jinling 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 Jinling with a short position of Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Guocheng Mining.
Diversification Opportunities for Jiangsu Jinling and Guocheng Mining
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Guocheng is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports 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 Jinling 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 Jinling Sports 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 Jinling i.e., Jiangsu Jinling and Guocheng Mining go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Guocheng Mining
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to under-perform the Guocheng Mining. In addition to that, Jiangsu Jinling is 1.12 times more volatile than Guocheng Mining Co. It trades about -0.02 of its total potential returns per unit of risk. Guocheng Mining Co is currently generating about -0.01 per unit of volatility. If you would invest 1,874 in Guocheng Mining Co on September 3, 2024 and sell it today you would lose (463.00) from holding Guocheng Mining Co or give up 24.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Guocheng Mining Co
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Guocheng Mining |
Jiangsu Jinling and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Guocheng Mining
The main advantage of trading using opposite Jiangsu Jinling and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling 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 Jinling vs. PetroChina Co Ltd | Jiangsu Jinling vs. China Mobile Limited | Jiangsu Jinling vs. Industrial and Commercial | Jiangsu Jinling vs. China Life Insurance |
| Guocheng Mining vs. Cultural Investment Holdings | Guocheng Mining vs. Gome Telecom Equipment | Guocheng Mining vs. Bus Online Co | Guocheng Mining vs. Holitech Technology 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 CEOs Directory module to screen CEOs from public companies around the world.
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