Correlation Between Guocheng Mining and Shenzhen Topway
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By analyzing existing cross correlation between Guocheng Mining Co and Shenzhen Topway Video, you can compare the effects of market volatilities on Guocheng Mining and Shenzhen Topway 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 Shenzhen Topway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Shenzhen Topway.
Diversification Opportunities for Guocheng Mining and Shenzhen Topway
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guocheng and Shenzhen is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Shenzhen Topway Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Topway Video 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 Shenzhen Topway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Topway Video has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Shenzhen Topway go up and down completely randomly.
Pair Corralation between Guocheng Mining and Shenzhen Topway
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.28 times more return on investment than Shenzhen Topway. However, Guocheng Mining is 1.28 times more volatile than Shenzhen Topway Video. It trades about -0.28 of its potential returns per unit of risk. Shenzhen Topway Video is currently generating about -0.45 per unit of risk. If you would invest 1,530 in Guocheng Mining Co on October 12, 2024 and sell it today you would lose (357.00) from holding Guocheng Mining Co or give up 23.33% 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. Shenzhen Topway Video
Performance |
| Timeline |
| Guocheng Mining |
| Shenzhen Topway Video |
Guocheng Mining and Shenzhen Topway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Shenzhen Topway
The main advantage of trading using opposite Guocheng Mining and Shenzhen Topway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Shenzhen Topway 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 Shenzhen Topway will offset losses from the drop in Shenzhen Topway's long position.| Guocheng Mining vs. Nuode Investment Co | Guocheng Mining vs. Beijing Mainstreets Investment | Guocheng Mining vs. RoadMain T Co | Guocheng Mining vs. Shenzhen Centralcon Investment |
| Shenzhen Topway vs. Industrial and Commercial | Shenzhen Topway vs. Agricultural Bank of | Shenzhen Topway vs. China Construction Bank | Shenzhen Topway vs. Bank of China |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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