Correlation Between China State and Guocheng Mining
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By analyzing existing cross correlation between China State Construction and Guocheng Mining Co, you can compare the effects of market volatilities on China State 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 China State with a short position of Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Guocheng Mining.
Diversification Opportunities for China State and Guocheng Mining
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Guocheng is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining and China State 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 State Construction 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 China State i.e., China State and Guocheng Mining go up and down completely randomly.
Pair Corralation between China State and Guocheng Mining
Assuming the 90 days trading horizon China State Construction is expected to generate 0.23 times more return on investment than Guocheng Mining. However, China State Construction is 4.27 times less risky than Guocheng Mining. It trades about 0.06 of its potential returns per unit of risk. Guocheng Mining Co is currently generating about -0.08 per unit of risk. If you would invest 597.00 in China State Construction on September 29, 2024 and sell it today you would earn a total of 7.00 from holding China State Construction or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Guocheng Mining Co
Performance |
| Timeline |
| China State Construction |
| Guocheng Mining |
China State and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Guocheng Mining
The main advantage of trading using opposite China State and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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.| China State vs. Holitech Technology Co | China State vs. Tianshui Huatian Technology | China State vs. Sunny Loan Top | China State vs. Tianjin Ruixin Technology |
| Guocheng Mining vs. Changchun UP Optotech | Guocheng Mining vs. Dhc Software Co | Guocheng Mining vs. Sihui Fuji Electronics | Guocheng Mining vs. HUAQIN TECHNOLOGY 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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