Correlation Between Guocheng Mining and Elite Color
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guocheng Mining Co and Elite Color Environmental, you can compare the effects of market volatilities on Guocheng Mining and Elite Color 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 Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Elite Color.
Diversification Opportunities for Guocheng Mining and Elite Color
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guocheng and Elite is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Elite Color Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elite Color Environmental 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 Elite Color. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elite Color Environmental has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Elite Color go up and down completely randomly.
Pair Corralation between Guocheng Mining and Elite Color
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.28 times more return on investment than Elite Color. However, Guocheng Mining is 1.28 times more volatile than Elite Color Environmental. It trades about 0.1 of its potential returns per unit of risk. Elite Color Environmental is currently generating about 0.09 per unit of risk. If you would invest 1,140 in Guocheng Mining Co on November 3, 2024 and sell it today you would earn a total of 48.00 from holding Guocheng Mining Co or generate 4.21% 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. Elite Color Environmental
Performance |
| Timeline |
| Guocheng Mining |
| Elite Color Environmental |
Guocheng Mining and Elite Color Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Elite Color
The main advantage of trading using opposite Guocheng Mining and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Elite Color 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 Elite Color will offset losses from the drop in Elite Color's long position.| Guocheng Mining vs. Bank of Communications | Guocheng Mining vs. Xiangyang Automobile Bearing | Guocheng Mining vs. Wuhan Yangtze Communication | Guocheng Mining vs. Jilin Jlu Communication |
| Elite Color vs. Northking Information Technology | Elite Color vs. Sichuan Yahua Industrial | Elite Color vs. Xinjiang Baodi Mining | Elite Color vs. Shenzhen Shenbao Industrial |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |