Correlation Between Guocheng Mining and Postal Savings
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By analyzing existing cross correlation between Guocheng Mining Co and Postal Savings Bank, you can compare the effects of market volatilities on Guocheng Mining and Postal Savings 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 Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Postal Savings.
Diversification Opportunities for Guocheng Mining and Postal Savings
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guocheng and Postal is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Postal Savings Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postal Savings Bank 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 Postal Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postal Savings Bank has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Postal Savings go up and down completely randomly.
Pair Corralation between Guocheng Mining and Postal Savings
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 2.5 times more return on investment than Postal Savings. However, Guocheng Mining is 2.5 times more volatile than Postal Savings Bank. It trades about 0.13 of its potential returns per unit of risk. Postal Savings Bank is currently generating about 0.04 per unit of risk. If you would invest 1,238 in Guocheng Mining Co on December 8, 2024 and sell it today you would earn a total of 80.00 from holding Guocheng Mining Co or generate 6.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. Postal Savings Bank
Performance |
| Timeline |
| Guocheng Mining |
| Postal Savings Bank |
Guocheng Mining and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Postal Savings
The main advantage of trading using opposite Guocheng Mining and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Postal Savings 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 Postal Savings will offset losses from the drop in Postal Savings' long position.| Guocheng Mining vs. Chengdu B ray Media | ||
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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