Correlation Between Guocheng Mining and Easyhome New
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By analyzing existing cross correlation between Guocheng Mining Co and Easyhome New Retail, you can compare the effects of market volatilities on Guocheng Mining and Easyhome New 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 Easyhome New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Easyhome New.
Diversification Opportunities for Guocheng Mining and Easyhome New
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guocheng and Easyhome is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Easyhome New Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easyhome New Retail 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 Easyhome New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easyhome New Retail has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Easyhome New go up and down completely randomly.
Pair Corralation between Guocheng Mining and Easyhome New
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.27 times more return on investment than Easyhome New. However, Guocheng Mining is 1.27 times more volatile than Easyhome New Retail. It trades about -0.01 of its potential returns per unit of risk. Easyhome New Retail is currently generating about -0.02 per unit of risk. If you would invest 1,789 in Guocheng Mining Co on September 1, 2024 and sell it today you would lose (378.00) from holding Guocheng Mining Co or give up 21.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Easyhome New Retail
Performance |
| Timeline |
| Guocheng Mining |
| Easyhome New Retail |
Guocheng Mining and Easyhome New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Easyhome New
The main advantage of trading using opposite Guocheng Mining and Easyhome New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Easyhome New 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 Easyhome New will offset losses from the drop in Easyhome New's long position.| 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 |
| Easyhome New vs. Bank of China | Easyhome New vs. Kweichow Moutai Co | Easyhome New vs. PetroChina Co Ltd | Easyhome New vs. Bank of Communications |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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