Correlation Between Guocheng Mining and Hangzhou Gisway
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By analyzing existing cross correlation between Guocheng Mining Co and Hangzhou Gisway Information, you can compare the effects of market volatilities on Guocheng Mining and Hangzhou Gisway 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 Hangzhou Gisway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Hangzhou Gisway.
Diversification Opportunities for Guocheng Mining and Hangzhou Gisway
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guocheng and Hangzhou is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Hangzhou Gisway Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gisway Info 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 Hangzhou Gisway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gisway Info has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Hangzhou Gisway go up and down completely randomly.
Pair Corralation between Guocheng Mining and Hangzhou Gisway
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.18 times more return on investment than Hangzhou Gisway. However, Guocheng Mining is 1.18 times more volatile than Hangzhou Gisway Information. It trades about 0.05 of its potential returns per unit of risk. Hangzhou Gisway Information is currently generating about -0.02 per unit of risk. If you would invest 1,318 in Guocheng Mining Co on September 5, 2024 and sell it today you would earn a total of 71.00 from holding Guocheng Mining Co or generate 5.39% 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. Hangzhou Gisway Information
Performance |
| Timeline |
| Guocheng Mining |
| Hangzhou Gisway Info |
Guocheng Mining and Hangzhou Gisway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Hangzhou Gisway
The main advantage of trading using opposite Guocheng Mining and Hangzhou Gisway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Hangzhou Gisway 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 Hangzhou Gisway will offset losses from the drop in Hangzhou Gisway's long position.| Guocheng Mining vs. Kweichow Moutai Co | Guocheng Mining vs. Shenzhen Mindray Bio Medical | Guocheng Mining vs. Jiangsu Pacific Quartz | Guocheng Mining vs. G bits Network Technology |
| Hangzhou Gisway vs. Hang Xiao Steel | Hangzhou Gisway vs. Anhui Deli Household | Hangzhou Gisway vs. City Development Environment | Hangzhou Gisway vs. Aofu Environmental Technology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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