Correlation Between Guocheng Mining and Wuhan Hvsen
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By analyzing existing cross correlation between Guocheng Mining Co and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Guocheng Mining and Wuhan Hvsen 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 Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Wuhan Hvsen.
Diversification Opportunities for Guocheng Mining and Wuhan Hvsen
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guocheng and Wuhan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Wuhan Hvsen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Hvsen Biotechnology 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 Wuhan Hvsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Hvsen Biotechnology has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Guocheng Mining and Wuhan Hvsen
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 0.95 times more return on investment than Wuhan Hvsen. However, Guocheng Mining Co is 1.05 times less risky than Wuhan Hvsen. It trades about -0.01 of its potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about -0.02 per unit of risk. If you would invest 1,770 in Guocheng Mining Co on August 29, 2024 and sell it today you would lose (450.00) from holding Guocheng Mining Co or give up 25.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Guocheng Mining |
| Wuhan Hvsen Biotechnology |
Guocheng Mining and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Wuhan Hvsen
The main advantage of trading using opposite Guocheng Mining and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Wuhan Hvsen 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 Wuhan Hvsen will offset losses from the drop in Wuhan Hvsen's long position.| Guocheng Mining vs. Citic Guoan Wine | Guocheng Mining vs. Hainan Mining Co | Guocheng Mining vs. Dawning Information Industry | Guocheng Mining vs. Zhuhai Comleader Information |
| Wuhan Hvsen vs. Industrial and Commercial | Wuhan Hvsen vs. China Construction Bank | Wuhan Hvsen vs. Agricultural Bank of | Wuhan Hvsen vs. Bank of China |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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