Correlation Between Guocheng Mining and Meinian Onehealth
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By analyzing existing cross correlation between Guocheng Mining Co and Meinian Onehealth Healthcare, you can compare the effects of market volatilities on Guocheng Mining and Meinian Onehealth 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 Meinian Onehealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Meinian Onehealth.
Diversification Opportunities for Guocheng Mining and Meinian Onehealth
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guocheng and Meinian is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Meinian Onehealth Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meinian Onehealth 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 Meinian Onehealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meinian Onehealth has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Meinian Onehealth go up and down completely randomly.
Pair Corralation between Guocheng Mining and Meinian Onehealth
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.21 times more return on investment than Meinian Onehealth. However, Guocheng Mining is 1.21 times more volatile than Meinian Onehealth Healthcare. It trades about -0.02 of its potential returns per unit of risk. Meinian Onehealth Healthcare is currently generating about -0.03 per unit of risk. If you would invest 1,754 in Guocheng Mining Co on October 13, 2024 and sell it today you would lose (614.00) from holding Guocheng Mining Co or give up 35.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Meinian Onehealth Healthcare
Performance |
| Timeline |
| Guocheng Mining |
| Meinian Onehealth |
Guocheng Mining and Meinian Onehealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Meinian Onehealth
The main advantage of trading using opposite Guocheng Mining and Meinian Onehealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Meinian Onehealth 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 Meinian Onehealth will offset losses from the drop in Meinian Onehealth's long position.| Guocheng Mining vs. Jiangyin Jianghua Microelectronics | Guocheng Mining vs. Sihui Fuji Electronics | Guocheng Mining vs. Advanced Technology Materials | Guocheng Mining vs. Western Metal Materials |
| Meinian Onehealth vs. Fiberhome Telecommunication Technologies | Meinian Onehealth vs. FSPG Hi Tech Co | Meinian Onehealth vs. Guocheng Mining Co | Meinian Onehealth vs. Hangzhou Arcvideo Technology |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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