Correlation Between Shanghai Yanpu and Guocheng Mining
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Guocheng Mining Co, you can compare the effects of market volatilities on Shanghai Yanpu 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 Shanghai Yanpu with a short position of Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Guocheng Mining.
Diversification Opportunities for Shanghai Yanpu and Guocheng Mining
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Guocheng is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining and Shanghai Yanpu 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 Shanghai Yanpu Metal 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 Shanghai Yanpu i.e., Shanghai Yanpu and Guocheng Mining go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Guocheng Mining
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 1.07 times more return on investment than Guocheng Mining. However, Shanghai Yanpu is 1.07 times more volatile than Guocheng Mining Co. It trades about 0.02 of its potential returns per unit of risk. Guocheng Mining Co is currently generating about -0.01 per unit of risk. If you would invest 3,791 in Shanghai Yanpu Metal on September 1, 2024 and sell it today you would earn a total of 247.00 from holding Shanghai Yanpu Metal or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Guocheng Mining Co
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Guocheng Mining |
Shanghai Yanpu and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Guocheng Mining
The main advantage of trading using opposite Shanghai Yanpu and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu 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.| Shanghai Yanpu vs. BYD Co Ltd | Shanghai Yanpu vs. China Mobile Limited | Shanghai Yanpu vs. Agricultural Bank of | Shanghai Yanpu vs. Industrial and Commercial |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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