Correlation Between Guocheng Mining and Ningbo MedicalSystem
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By analyzing existing cross correlation between Guocheng Mining Co and Ningbo MedicalSystem Biotechnology, you can compare the effects of market volatilities on Guocheng Mining and Ningbo MedicalSystem 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 Ningbo MedicalSystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Ningbo MedicalSystem.
Diversification Opportunities for Guocheng Mining and Ningbo MedicalSystem
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guocheng and Ningbo is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Ningbo MedicalSystem Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo MedicalSystem 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 Ningbo MedicalSystem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo MedicalSystem has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Ningbo MedicalSystem go up and down completely randomly.
Pair Corralation between Guocheng Mining and Ningbo MedicalSystem
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 2.02 times more return on investment than Ningbo MedicalSystem. However, Guocheng Mining is 2.02 times more volatile than Ningbo MedicalSystem Biotechnology. It trades about 0.11 of its potential returns per unit of risk. Ningbo MedicalSystem Biotechnology is currently generating about 0.11 per unit of risk. If you would invest 1,139 in Guocheng Mining Co on November 5, 2024 and sell it today you would earn a total of 49.00 from holding Guocheng Mining Co or generate 4.3% 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. Ningbo MedicalSystem Biotechno
Performance |
| Timeline |
| Guocheng Mining |
| Ningbo MedicalSystem |
Guocheng Mining and Ningbo MedicalSystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Ningbo MedicalSystem
The main advantage of trading using opposite Guocheng Mining and Ningbo MedicalSystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Ningbo MedicalSystem 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 Ningbo MedicalSystem will offset losses from the drop in Ningbo MedicalSystem's long position.| Guocheng Mining vs. Beingmate Baby Child | Guocheng Mining vs. Xinjiang Baodi Mining | Guocheng Mining vs. Guangzhou Haige Communications | Guocheng Mining vs. JCHX Mining Management |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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