Correlation Between Guocheng Mining and Gotion High
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By analyzing existing cross correlation between Guocheng Mining Co and Gotion High tech, you can compare the effects of market volatilities on Guocheng Mining and Gotion High 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 Gotion High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Gotion High.
Diversification Opportunities for Guocheng Mining and Gotion High
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guocheng and Gotion is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Gotion High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gotion High tech 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 Gotion High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gotion High tech has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Gotion High go up and down completely randomly.
Pair Corralation between Guocheng Mining and Gotion High
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.21 times more return on investment than Gotion High. However, Guocheng Mining is 1.21 times more volatile than Gotion High tech. It trades about -0.02 of its potential returns per unit of risk. Gotion High tech is currently generating about -0.03 per unit of risk. If you would invest 1,779 in Guocheng Mining Co on October 29, 2024 and sell it today you would lose (583.00) from holding Guocheng Mining Co or give up 32.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Gotion High tech
Performance |
| Timeline |
| Guocheng Mining |
| Gotion High tech |
Guocheng Mining and Gotion High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Gotion High
The main advantage of trading using opposite Guocheng Mining and Gotion High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Gotion High 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 Gotion High will offset losses from the drop in Gotion High's long position.| Guocheng Mining vs. Pengxin International Mining | Guocheng Mining vs. Western Metal Materials | Guocheng Mining vs. Shengda Mining Co | Guocheng Mining vs. Maoming Petro Chemical Shihua |
| Gotion High vs. Industrial and Commercial | Gotion High vs. China Construction Bank | Gotion High vs. Bank of China | Gotion High vs. Agricultural Bank of |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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