Correlation Between Guangxi Guiguan and North Copper
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangxi Guiguan Electric and North Copper Shanxi, you can compare the effects of market volatilities on Guangxi Guiguan and North Copper 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 Guangxi Guiguan with a short position of North Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Guiguan and North Copper.
Diversification Opportunities for Guangxi Guiguan and North Copper
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guangxi and North is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Guiguan Electric and North Copper Shanxi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Copper Shanxi and Guangxi Guiguan 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 Guangxi Guiguan Electric are associated (or correlated) with North Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Copper Shanxi has no effect on the direction of Guangxi Guiguan i.e., Guangxi Guiguan and North Copper go up and down completely randomly.
Pair Corralation between Guangxi Guiguan and North Copper
Assuming the 90 days trading horizon Guangxi Guiguan is expected to generate 1.62 times less return on investment than North Copper. But when comparing it to its historical volatility, Guangxi Guiguan Electric is 1.83 times less risky than North Copper. It trades about 0.07 of its potential returns per unit of risk. North Copper Shanxi is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 857.00 in North Copper Shanxi on October 30, 2024 and sell it today you would earn a total of 49.00 from holding North Copper Shanxi or generate 5.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Guiguan Electric vs. North Copper Shanxi
Performance |
| Timeline |
| Guangxi Guiguan Electric |
| North Copper Shanxi |
Guangxi Guiguan and North Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Guiguan and North Copper
The main advantage of trading using opposite Guangxi Guiguan and North Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Guiguan position performs unexpectedly, North Copper 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 North Copper will offset losses from the drop in North Copper's long position.| Guangxi Guiguan vs. Shanghai Material Trading | Guangxi Guiguan vs. Bank of Communications | Guangxi Guiguan vs. Queclink Wireless Solutions | Guangxi Guiguan vs. Henan Shuanghui Investment |
| North Copper vs. Citic Guoan Wine | North Copper vs. Shanghai Yaoji Playing | North Copper vs. Nuode Investment Co | North Copper vs. Hunan Investment Group |
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.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |