Correlation Between Guocheng Mining and Geron
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By analyzing existing cross correlation between Guocheng Mining Co and Geron Co, you can compare the effects of market volatilities on Guocheng Mining and Geron 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 Geron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Geron.
Diversification Opportunities for Guocheng Mining and Geron
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guocheng and Geron is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Geron Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geron 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 Geron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geron has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Geron go up and down completely randomly.
Pair Corralation between Guocheng Mining and Geron
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.06 times more return on investment than Geron. However, Guocheng Mining is 1.06 times more volatile than Geron Co. It trades about 0.26 of its potential returns per unit of risk. Geron Co is currently generating about 0.2 per unit of risk. If you would invest 1,302 in Guocheng Mining Co on September 14, 2024 and sell it today you would earn a total of 298.00 from holding Guocheng Mining Co or generate 22.89% 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. Geron Co
Performance |
| Timeline |
| Guocheng Mining |
| Geron |
Guocheng Mining and Geron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Geron
The main advantage of trading using opposite Guocheng Mining and Geron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Geron 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 Geron will offset losses from the drop in Geron's long position.| Guocheng Mining vs. Servyou Software Group | Guocheng Mining vs. Fujian Rongji Software | Guocheng Mining vs. Fiberhome Telecommunication Technologies | Guocheng Mining vs. Easyhome New Retail |
| Geron vs. CSSC Offshore Marine | Geron vs. Jilin Jlu Communication | Geron vs. Guocheng Mining Co | Geron vs. China Nonferrous 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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