Correlation Between Guocheng Mining and JuneYao Dairy
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By analyzing existing cross correlation between Guocheng Mining Co and JuneYao Dairy Co, you can compare the effects of market volatilities on Guocheng Mining and JuneYao Dairy 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 JuneYao Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and JuneYao Dairy.
Diversification Opportunities for Guocheng Mining and JuneYao Dairy
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guocheng and JuneYao is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and JuneYao Dairy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JuneYao Dairy 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 JuneYao Dairy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JuneYao Dairy has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and JuneYao Dairy go up and down completely randomly.
Pair Corralation between Guocheng Mining and JuneYao Dairy
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.11 times more return on investment than JuneYao Dairy. However, Guocheng Mining is 1.11 times more volatile than JuneYao Dairy Co. It trades about -0.09 of its potential returns per unit of risk. JuneYao Dairy Co is currently generating about -0.17 per unit of risk. If you would invest 1,271 in Guocheng Mining Co on October 27, 2024 and sell it today you would lose (75.00) from holding Guocheng Mining Co or give up 5.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guocheng Mining Co vs. JuneYao Dairy Co
Performance |
| Timeline |
| Guocheng Mining |
| JuneYao Dairy |
Guocheng Mining and JuneYao Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and JuneYao Dairy
The main advantage of trading using opposite Guocheng Mining and JuneYao Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, JuneYao Dairy 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 JuneYao Dairy will offset losses from the drop in JuneYao Dairy's long position.| Guocheng Mining vs. FSPG Hi Tech Co | Guocheng Mining vs. Jiangxi Hengda Hi Tech | Guocheng Mining vs. Strait Innovation Internet | Guocheng Mining vs. Tongyu Communication |
| JuneYao Dairy vs. Easyhome New Retail | JuneYao Dairy vs. Xiamen Goldenhome Co | JuneYao Dairy vs. China Building Material | JuneYao Dairy vs. Fuda Alloy Materials |
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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