Correlation Between Guocheng Mining and Penyao Environmental
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By analyzing existing cross correlation between Guocheng Mining Co and Penyao Environmental Protection, you can compare the effects of market volatilities on Guocheng Mining and Penyao Environmental 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 Penyao Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Penyao Environmental.
Diversification Opportunities for Guocheng Mining and Penyao Environmental
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guocheng and Penyao is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Penyao Environmental Protectio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penyao 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 Penyao Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penyao Environmental has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Penyao Environmental go up and down completely randomly.
Pair Corralation between Guocheng Mining and Penyao Environmental
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.37 times more return on investment than Penyao Environmental. However, Guocheng Mining is 1.37 times more volatile than Penyao Environmental Protection. It trades about -0.1 of its potential returns per unit of risk. Penyao Environmental Protection is currently generating about -0.19 per unit of risk. If you would invest 1,411 in Guocheng Mining Co on October 30, 2024 and sell it today you would lose (223.00) from holding Guocheng Mining Co or give up 15.8% 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. Penyao Environmental Protectio
Performance |
| Timeline |
| Guocheng Mining |
| Penyao Environmental |
Guocheng Mining and Penyao Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Penyao Environmental
The main advantage of trading using opposite Guocheng Mining and Penyao Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Penyao Environmental 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 Penyao Environmental will offset losses from the drop in Penyao Environmental's long position.| Guocheng Mining vs. UCloud Technology Co | Guocheng Mining vs. Dymatic Chemicals | Guocheng Mining vs. Northking Information Technology | Guocheng Mining vs. Jinyu Bio Technology Co |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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