Correlation Between Centerra Gold and China Steel
Can any of the company-specific risk be diversified away by investing in both Centerra Gold and China Steel at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Centerra Gold and China Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centerra Gold and China Steel, you can compare the effects of market volatilities on Centerra Gold and China Steel 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 Centerra Gold with a short position of China Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centerra Gold and China Steel.
Diversification Opportunities for Centerra Gold and China Steel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Centerra and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Centerra Gold and China Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Steel and Centerra Gold 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 Centerra Gold are associated (or correlated) with China Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Steel has no effect on the direction of Centerra Gold i.e., Centerra Gold and China Steel go up and down completely randomly.
Pair Corralation between Centerra Gold and China Steel
If you would invest 1,117 in China Steel on January 25, 2024 and sell it today you would earn a total of 1,760 from holding China Steel or generate 157.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.29% |
| Values | Daily Returns |
Centerra Gold vs. China Steel
Performance |
| Timeline |
| Centerra Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| China Steel |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Centerra Gold and China Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centerra Gold and China Steel
The main advantage of trading using opposite Centerra Gold and China Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centerra Gold position performs unexpectedly, China Steel 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 Steel will offset losses from the drop in China Steel's long position.| Centerra Gold vs. Haverty Furniture Companies | Centerra Gold vs. Harmony Gold Mining | Centerra Gold vs. Griffon | Centerra Gold vs. Douglas Emmett |
| China Steel vs. Titan Petrochemicals Group | China Steel vs. Ecolab Inc | China Steel vs. Broadstone Net LeaseInc | China Steel vs. Global Ship Lease |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |