Correlation Between Goldlok Toys and Guocheng Mining
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By analyzing existing cross correlation between Goldlok Toys Holdings and Guocheng Mining Co, you can compare the effects of market volatilities on Goldlok Toys and Guocheng Mining 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 Goldlok Toys with a short position of Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldlok Toys and Guocheng Mining.
Diversification Opportunities for Goldlok Toys and Guocheng Mining
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Goldlok and Guocheng is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Goldlok Toys Holdings and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining and Goldlok Toys 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 Goldlok Toys Holdings are associated (or correlated) with Guocheng Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guocheng Mining has no effect on the direction of Goldlok Toys i.e., Goldlok Toys and Guocheng Mining go up and down completely randomly.
Pair Corralation between Goldlok Toys and Guocheng Mining
Assuming the 90 days trading horizon Goldlok Toys Holdings is expected to generate 1.72 times more return on investment than Guocheng Mining. However, Goldlok Toys is 1.72 times more volatile than Guocheng Mining Co. It trades about 0.23 of its potential returns per unit of risk. Guocheng Mining Co is currently generating about 0.21 per unit of risk. If you would invest 315.00 in Goldlok Toys Holdings on September 1, 2024 and sell it today you would earn a total of 108.00 from holding Goldlok Toys Holdings or generate 34.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldlok Toys Holdings vs. Guocheng Mining Co
Performance |
| Timeline |
| Goldlok Toys Holdings |
| Guocheng Mining |
Goldlok Toys and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldlok Toys and Guocheng Mining
The main advantage of trading using opposite Goldlok Toys and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldlok Toys position performs unexpectedly, Guocheng Mining 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 Guocheng Mining will offset losses from the drop in Guocheng Mining's long position.| Goldlok Toys vs. Nanjing Putian Telecommunications | Goldlok Toys vs. Shenzhen Hifuture Electric | Goldlok Toys vs. Tianjin Realty Development | Goldlok Toys vs. Shenyang Huitian Thermal |
| Guocheng Mining vs. Kweichow Moutai Co | Guocheng Mining vs. Contemporary Amperex Technology | Guocheng Mining vs. G bits Network Technology | Guocheng Mining vs. BYD Co Ltd |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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