Correlation Between Guocheng Mining and Shandong Longquan
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By analyzing existing cross correlation between Guocheng Mining Co and Shandong Longquan Pipeline, you can compare the effects of market volatilities on Guocheng Mining and Shandong Longquan 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 Shandong Longquan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Shandong Longquan.
Diversification Opportunities for Guocheng Mining and Shandong Longquan
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guocheng and Shandong is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Shandong Longquan Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Longquan 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 Shandong Longquan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Longquan has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Shandong Longquan go up and down completely randomly.
Pair Corralation between Guocheng Mining and Shandong Longquan
Assuming the 90 days trading horizon Guocheng Mining Co is expected to under-perform the Shandong Longquan. In addition to that, Guocheng Mining is 1.82 times more volatile than Shandong Longquan Pipeline. It trades about -0.1 of its total potential returns per unit of risk. Shandong Longquan Pipeline is currently generating about 0.12 per unit of volatility. If you would invest 463.00 in Shandong Longquan Pipeline on October 28, 2024 and sell it today you would earn a total of 17.00 from holding Shandong Longquan Pipeline or generate 3.67% 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. Shandong Longquan Pipeline
Performance |
| Timeline |
| Guocheng Mining |
| Shandong Longquan |
Guocheng Mining and Shandong Longquan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Shandong Longquan
The main advantage of trading using opposite Guocheng Mining and Shandong Longquan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Shandong Longquan 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 Shandong Longquan will offset losses from the drop in Shandong Longquan's long position.| Guocheng Mining vs. Guangdong Silvere Sci | Guocheng Mining vs. JCHX Mining Management | Guocheng Mining vs. Beijing Jiaman Dress | Guocheng Mining vs. Chenzhou Jingui Silver |
| Shandong Longquan vs. Quectel Wireless Solutions | Shandong Longquan vs. GuoChuang Software Co | Shandong Longquan vs. Beijing Baolande Software | Shandong Longquan vs. Glodon Software 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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