Correlation Between Guocheng Mining and Success Electronics
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By analyzing existing cross correlation between Guocheng Mining Co and Success Electronics, you can compare the effects of market volatilities on Guocheng Mining and Success Electronics 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 Success Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Success Electronics.
Diversification Opportunities for Guocheng Mining and Success Electronics
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guocheng and Success is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Success Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Success Electronics 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 Success Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Success Electronics has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Success Electronics go up and down completely randomly.
Pair Corralation between Guocheng Mining and Success Electronics
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 0.91 times more return on investment than Success Electronics. However, Guocheng Mining Co is 1.1 times less risky than Success Electronics. It trades about -0.01 of its potential returns per unit of risk. Success Electronics is currently generating about -0.04 per unit of risk. If you would invest 1,754 in Guocheng Mining Co on October 16, 2024 and sell it today you would lose (520.00) from holding Guocheng Mining Co or give up 29.65% 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. Success Electronics
Performance |
| Timeline |
| Guocheng Mining |
| Success Electronics |
Guocheng Mining and Success Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Success Electronics
The main advantage of trading using opposite Guocheng Mining and Success Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Success Electronics 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 Success Electronics will offset losses from the drop in Success Electronics' long position.| Guocheng Mining vs. Anhui Deli Household | Guocheng Mining vs. Zhejiang Gongdong Medical | Guocheng Mining vs. Eyebright Medical Technology | Guocheng Mining vs. Hengkang Medical Group |
| Success Electronics vs. Guangdong Shenglu Telecommunication | Success Electronics vs. Wuhan Yangtze Communication | Success Electronics vs. Tibet Huayu Mining | Success Electronics vs. Guocheng Mining Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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