Correlation Between Guocheng Mining and Goldlok Toys
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By analyzing existing cross correlation between Guocheng Mining Co and Goldlok Toys Holdings, you can compare the effects of market volatilities on Guocheng Mining and Goldlok Toys 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 Goldlok Toys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Goldlok Toys.
Diversification Opportunities for Guocheng Mining and Goldlok Toys
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guocheng and Goldlok is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Goldlok Toys Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldlok Toys Holdings 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 Goldlok Toys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldlok Toys Holdings has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Goldlok Toys go up and down completely randomly.
Pair Corralation between Guocheng Mining and Goldlok Toys
Assuming the 90 days trading horizon Guocheng Mining Co is expected to under-perform the Goldlok Toys. But the stock apears to be less risky and, when comparing its historical volatility, Guocheng Mining Co is 1.23 times less risky than Goldlok Toys. The stock trades about -0.01 of its potential returns per unit of risk. The Goldlok Toys Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 384.00 in Goldlok Toys Holdings on September 3, 2024 and sell it today you would earn a total of 39.00 from holding Goldlok Toys Holdings or generate 10.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Goldlok Toys Holdings
Performance |
| Timeline |
| Guocheng Mining |
| Goldlok Toys Holdings |
Guocheng Mining and Goldlok Toys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Goldlok Toys
The main advantage of trading using opposite Guocheng Mining and Goldlok Toys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Goldlok Toys 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 Goldlok Toys will offset losses from the drop in Goldlok Toys' long position.| Guocheng Mining vs. Cultural Investment Holdings | Guocheng Mining vs. Gome Telecom Equipment | Guocheng Mining vs. Bus Online Co | Guocheng Mining vs. Holitech Technology Co |
| Goldlok Toys vs. Shanghai Metersbonwe FashionAccessories | Goldlok Toys vs. Guocheng Mining Co | Goldlok Toys vs. Hefei Metalforming Mach | Goldlok Toys vs. Zhejiang Yayi Metal |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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