Correlation Between Guocheng Mining and Xinjiang Beixin
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By analyzing existing cross correlation between Guocheng Mining Co and Xinjiang Beixin RoadBridge, you can compare the effects of market volatilities on Guocheng Mining and Xinjiang Beixin 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 Guocheng Mining with a short position of Xinjiang Beixin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Xinjiang Beixin.
Diversification Opportunities for Guocheng Mining and Xinjiang Beixin
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guocheng and Xinjiang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Xinjiang Beixin RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Beixin Road and Guocheng Mining 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 Guocheng Mining Co are associated (or correlated) with Xinjiang Beixin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Beixin Road has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Xinjiang Beixin go up and down completely randomly.
Pair Corralation between Guocheng Mining and Xinjiang Beixin
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.08 times more return on investment than Xinjiang Beixin. However, Guocheng Mining is 1.08 times more volatile than Xinjiang Beixin RoadBridge. It trades about 0.27 of its potential returns per unit of risk. Xinjiang Beixin RoadBridge is currently generating about 0.21 per unit of risk. If you would invest 888.00 in Guocheng Mining Co on September 15, 2024 and sell it today you would earn a total of 663.00 from holding Guocheng Mining Co or generate 74.66% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guocheng Mining Co vs. Xinjiang Beixin RoadBridge
Performance |
Timeline |
Guocheng Mining |
Xinjiang Beixin Road |
Guocheng Mining and Xinjiang Beixin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guocheng Mining and Xinjiang Beixin
The main advantage of trading using opposite Guocheng Mining and Xinjiang Beixin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Xinjiang Beixin 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 Xinjiang Beixin will offset losses from the drop in Xinjiang Beixin's long position.Guocheng Mining vs. Cambricon Technologies Corp | Guocheng Mining vs. Loongson Technology Corp | Guocheng Mining vs. Shenzhen Fortune Trend | Guocheng Mining vs. Chongqing Road Bridge |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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