Correlation Between Guocheng Mining and Sobute New
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By analyzing existing cross correlation between Guocheng Mining Co and Sobute New Materials, you can compare the effects of market volatilities on Guocheng Mining and Sobute New 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 Sobute New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Sobute New.
Diversification Opportunities for Guocheng Mining and Sobute New
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guocheng and Sobute is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Sobute New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sobute New Materials 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 Sobute New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sobute New Materials has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Sobute New go up and down completely randomly.
Pair Corralation between Guocheng Mining and Sobute New
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 2.31 times more return on investment than Sobute New. However, Guocheng Mining is 2.31 times more volatile than Sobute New Materials. It trades about 0.26 of its potential returns per unit of risk. Sobute New Materials is currently generating about 0.08 per unit of risk. If you would invest 1,302 in Guocheng Mining Co on September 14, 2024 and sell it today you would earn a total of 298.00 from holding Guocheng Mining Co or generate 22.89% 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. Sobute New Materials
Performance |
| Timeline |
| Guocheng Mining |
| Sobute New Materials |
Guocheng Mining and Sobute New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Sobute New
The main advantage of trading using opposite Guocheng Mining and Sobute New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Sobute New 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 Sobute New will offset losses from the drop in Sobute New's long position.| Guocheng Mining vs. Servyou Software Group | Guocheng Mining vs. Fujian Rongji Software | Guocheng Mining vs. Fiberhome Telecommunication Technologies | Guocheng Mining vs. Easyhome New Retail |
| Sobute New vs. Guocheng Mining Co | Sobute New vs. Ningbo Thermal Power | Sobute New vs. Zhejiang Qianjiang Motorcycle | Sobute New vs. Minmetals Capital 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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