Correlation Between Jiangsu Pacific and Guocheng Mining
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By analyzing existing cross correlation between Jiangsu Pacific Quartz and Guocheng Mining Co, you can compare the effects of market volatilities on Jiangsu Pacific 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 Pacific with a short position of Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Pacific and Guocheng Mining.
Diversification Opportunities for Jiangsu Pacific and Guocheng Mining
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Guocheng is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Pacific Quartz 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 Pacific 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 Pacific Quartz 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 Pacific i.e., Jiangsu Pacific and Guocheng Mining go up and down completely randomly.
Pair Corralation between Jiangsu Pacific and Guocheng Mining
Assuming the 90 days trading horizon Jiangsu Pacific Quartz is expected to under-perform the Guocheng Mining. In addition to that, Jiangsu Pacific is 1.02 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 0.05 per unit of volatility. If you would invest 1,212 in Guocheng Mining Co on September 5, 2024 and sell it today you would earn a total of 177.00 from holding Guocheng Mining Co or generate 14.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Pacific Quartz vs. Guocheng Mining Co
Performance |
| Timeline |
| Jiangsu Pacific Quartz |
| Guocheng Mining |
Jiangsu Pacific and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Pacific and Guocheng Mining
The main advantage of trading using opposite Jiangsu Pacific and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Pacific 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 Pacific vs. Tianjin Capital Environmental | Jiangsu Pacific vs. Jiangxi JDL Environmental | Jiangsu Pacific vs. Aofu Environmental Technology | Jiangsu Pacific vs. Jiahe Foods Industry |
| Guocheng Mining vs. Kweichow Moutai Co | Guocheng Mining vs. Shenzhen Mindray Bio Medical | Guocheng Mining vs. Jiangsu Pacific Quartz | Guocheng Mining vs. G bits Network Technology |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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