Correlation Between Guocheng Mining and Shenzhen Aisidi
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By analyzing existing cross correlation between Guocheng Mining Co and Shenzhen Aisidi Co, you can compare the effects of market volatilities on Guocheng Mining and Shenzhen Aisidi 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 Aisidi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Shenzhen Aisidi.
Diversification Opportunities for Guocheng Mining and Shenzhen Aisidi
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guocheng and Shenzhen is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Shenzhen Aisidi Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Aisidi 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 Aisidi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Aisidi has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Shenzhen Aisidi go up and down completely randomly.
Pair Corralation between Guocheng Mining and Shenzhen Aisidi
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.05 times more return on investment than Shenzhen Aisidi. However, Guocheng Mining is 1.05 times more volatile than Shenzhen Aisidi Co. It trades about 0.24 of its potential returns per unit of risk. Shenzhen Aisidi Co is currently generating about 0.0 per unit of risk. If you would invest 1,262 in Guocheng Mining Co on September 13, 2024 and sell it today you would earn a total of 268.00 from holding Guocheng Mining Co or generate 21.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Shenzhen Aisidi Co
Performance |
| Timeline |
| Guocheng Mining |
| Shenzhen Aisidi |
Guocheng Mining and Shenzhen Aisidi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Shenzhen Aisidi
The main advantage of trading using opposite Guocheng Mining and Shenzhen Aisidi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Shenzhen Aisidi 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 Aisidi will offset losses from the drop in Shenzhen Aisidi's long position.| Guocheng Mining vs. Cambricon Technologies Corp | Guocheng Mining vs. Loongson Technology Corp | Guocheng Mining vs. Shenzhen Fortune Trend | Guocheng Mining vs. Chongqing Road Bridge |
| Shenzhen Aisidi vs. Railway Signal Communication | Shenzhen Aisidi vs. Guilin Seamild Foods | Shenzhen Aisidi vs. Shanghai Ziyan Foods | Shenzhen Aisidi vs. Youyou Foods 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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