China Historical Cash Flow
Pair Trading with China Gold
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if China Gold position performs unexpectedly, the other equity 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 China Gold will appreciate offsetting losses from the drop in the long position's value.Moving against China Stock
0.48 | ORE | Orezone Gold Corp | PairCorr |
0.45 | FDY | Faraday Copper Corp | PairCorr |
0.45 | INFM | Infinico Metals Corp | PairCorr |
0.42 | XOM | EXXON MOBIL CDR | PairCorr |
The ability to find closely correlated positions to China Gold could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace China Gold when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back China Gold - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling China Gold International to buy it.
The correlation of China Gold is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as China Gold moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if China Gold International moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for China Gold can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Other Information on Investing in China Stock
The Cash Flow Statement is a financial statement that shows how changes in China balance sheet and income statement accounts affect cash and cash equivalents. It breaks the analysis down to operating, investing, and financing activities. One of the most critical aspects of the cash flow statement is liquidity, which is the degree to which China's non-liquid assets can be easily converted into cash.