Correlation Between Guocheng Mining and Gan Yuan
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By analyzing existing cross correlation between Guocheng Mining Co and Gan Yuan Foods, you can compare the effects of market volatilities on Guocheng Mining and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Gan Yuan.
Diversification Opportunities for Guocheng Mining and Gan Yuan
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guocheng and Gan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Gan Yuan go up and down completely randomly.
Pair Corralation between Guocheng Mining and Gan Yuan
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.76 times more return on investment than Gan Yuan. However, Guocheng Mining is 1.76 times more volatile than Gan Yuan Foods. It trades about 0.22 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.17 per unit of risk. If you would invest 1,191 in Guocheng Mining Co on September 2, 2024 and sell it today you would earn a total of 220.00 from holding Guocheng Mining Co or generate 18.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Gan Yuan Foods
Performance |
| Timeline |
| Guocheng Mining |
| Gan Yuan Foods |
Guocheng Mining and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Gan Yuan
The main advantage of trading using opposite Guocheng Mining and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan'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 |
| Gan Yuan vs. Dalian Thermal Power | Gan Yuan vs. Guocheng Mining Co | Gan Yuan vs. Southern PublishingMedia Co | Gan Yuan vs. Beijing Kaiwen Education |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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