Correlation Between Guocheng Mining and Xinjiang Tianrun
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By analyzing existing cross correlation between Guocheng Mining Co and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Guocheng Mining and Xinjiang Tianrun 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 Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Xinjiang Tianrun.
Diversification Opportunities for Guocheng Mining and Xinjiang Tianrun
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guocheng and Xinjiang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Guocheng Mining and Xinjiang Tianrun
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.33 times more return on investment than Xinjiang Tianrun. However, Guocheng Mining is 1.33 times more volatile than Xinjiang Tianrun Dairy. It trades about 0.21 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about 0.19 per unit of risk. If you would invest 928.00 in Guocheng Mining Co on August 31, 2024 and sell it today you would earn a total of 472.00 from holding Guocheng Mining Co or generate 50.86% 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 Tianrun Dairy
Performance |
Timeline |
Guocheng Mining |
Xinjiang Tianrun Dairy |
Guocheng Mining and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guocheng Mining and Xinjiang Tianrun
The main advantage of trading using opposite Guocheng Mining and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Xinjiang Tianrun 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 Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.Guocheng Mining vs. Cultural Investment Holdings | Guocheng Mining vs. Gome Telecom Equipment | Guocheng Mining vs. Bus Online Co | Guocheng Mining vs. Holitech Technology Co |
Xinjiang Tianrun vs. Lutian Machinery Co | Xinjiang Tianrun vs. PetroChina Co Ltd | Xinjiang Tianrun vs. Bank of China | Xinjiang Tianrun vs. Gansu Jiu Steel |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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