Correlation Between Guocheng Mining and Guosheng Financial
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By analyzing existing cross correlation between Guocheng Mining Co and Guosheng Financial Holding, you can compare the effects of market volatilities on Guocheng Mining and Guosheng Financial 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 Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Guosheng Financial.
Diversification Opportunities for Guocheng Mining and Guosheng Financial
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guocheng and Guosheng is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial 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 Guosheng Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guosheng Financial has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Guosheng Financial go up and down completely randomly.
Pair Corralation between Guocheng Mining and Guosheng Financial
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.0 times more return on investment than Guosheng Financial. However, Guocheng Mining is 1.0 times more volatile than Guosheng Financial Holding. It trades about 0.21 of its potential returns per unit of risk. Guosheng Financial Holding is currently generating about 0.15 per unit of risk. If you would invest 1,198 in Guocheng Mining Co on September 1, 2024 and sell it today you would earn a total of 213.00 from holding Guocheng Mining Co or generate 17.78% 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. Guosheng Financial Holding
Performance |
| Timeline |
| Guocheng Mining |
| Guosheng Financial |
Guocheng Mining and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Guosheng Financial
The main advantage of trading using opposite Guocheng Mining and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Guosheng Financial 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 Guosheng Financial will offset losses from the drop in Guosheng Financial's long position.| Guocheng Mining vs. Kweichow Moutai Co | Guocheng Mining vs. Contemporary Amperex Technology | Guocheng Mining vs. G bits Network Technology | Guocheng Mining vs. BYD Co Ltd |
| Guosheng Financial vs. Industrial and Commercial | Guosheng Financial vs. China Construction Bank | Guosheng Financial vs. Agricultural Bank of | Guosheng Financial 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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