Correlation Between Guocheng Mining and Chengdu Spaceon
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By analyzing existing cross correlation between Guocheng Mining Co and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Guocheng Mining and Chengdu Spaceon 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 Chengdu Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Chengdu Spaceon.
Diversification Opportunities for Guocheng Mining and Chengdu Spaceon
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guocheng and Chengdu is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Chengdu Spaceon Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Spaceon Elec 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 Chengdu Spaceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Spaceon Elec has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Guocheng Mining and Chengdu Spaceon
Assuming the 90 days trading horizon Guocheng Mining Co is expected to under-perform the Chengdu Spaceon. In addition to that, Guocheng Mining is 1.89 times more volatile than Chengdu Spaceon Electronics. It trades about -0.36 of its total potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about -0.33 per unit of volatility. If you would invest 1,744 in Chengdu Spaceon Electronics on October 14, 2024 and sell it today you would lose (237.00) from holding Chengdu Spaceon Electronics or give up 13.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Chengdu Spaceon Electronics
Performance |
| Timeline |
| Guocheng Mining |
| Chengdu Spaceon Elec |
Guocheng Mining and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Chengdu Spaceon
The main advantage of trading using opposite Guocheng Mining and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Chengdu Spaceon 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 Chengdu Spaceon will offset losses from the drop in Chengdu Spaceon's long position.| Guocheng Mining vs. Anhui Shiny Electronic | Guocheng Mining vs. YiDong Electronics Technology | Guocheng Mining vs. Shenzhen Zhongzhuang Construction | Guocheng Mining vs. Xinya Electronic Co |
| Chengdu Spaceon vs. Guocheng Mining Co | Chengdu Spaceon vs. Bus Online Co | Chengdu Spaceon vs. Strait Innovation Internet | Chengdu Spaceon vs. Pengxin International Mining |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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