Correlation Between Guocheng Mining and Shenzhen Fortune
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By analyzing existing cross correlation between Guocheng Mining Co and Shenzhen Fortune Trend, you can compare the effects of market volatilities on Guocheng Mining and Shenzhen Fortune 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 Shenzhen Fortune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Shenzhen Fortune.
Diversification Opportunities for Guocheng Mining and Shenzhen Fortune
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guocheng and Shenzhen is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Shenzhen Fortune Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Fortune Trend 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 Shenzhen Fortune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Fortune Trend has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Shenzhen Fortune go up and down completely randomly.
Pair Corralation between Guocheng Mining and Shenzhen Fortune
Assuming the 90 days trading horizon Guocheng Mining is expected to generate 13.97 times less return on investment than Shenzhen Fortune. But when comparing it to its historical volatility, Guocheng Mining Co is 1.88 times less risky than Shenzhen Fortune. It trades about 0.01 of its potential returns per unit of risk. Shenzhen Fortune Trend is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5,955 in Shenzhen Fortune Trend on September 14, 2024 and sell it today you would earn a total of 13,981 from holding Shenzhen Fortune Trend or generate 234.78% 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. Shenzhen Fortune Trend
Performance |
| Timeline |
| Guocheng Mining |
| Shenzhen Fortune Trend |
Guocheng Mining and Shenzhen Fortune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guocheng Mining and Shenzhen Fortune
The main advantage of trading using opposite Guocheng Mining and Shenzhen Fortune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Shenzhen Fortune 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 Shenzhen Fortune will offset losses from the drop in Shenzhen Fortune'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 |
| Shenzhen Fortune vs. Guocheng Mining Co | Shenzhen Fortune vs. Jiangxi Naipu Mining | Shenzhen Fortune vs. Xinhua Winshare Publishing | Shenzhen Fortune vs. Huaibei Mining Holdings |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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