Correlation Between Fujian Rongji and Guocheng Mining
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By analyzing existing cross correlation between Fujian Rongji Software and Guocheng Mining Co, you can compare the effects of market volatilities on Fujian Rongji 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 Fujian Rongji with a short position of Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Rongji and Guocheng Mining.
Diversification Opportunities for Fujian Rongji and Guocheng Mining
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Guocheng is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Rongji Software and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining and Fujian Rongji 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 Fujian Rongji Software 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 Fujian Rongji i.e., Fujian Rongji and Guocheng Mining go up and down completely randomly.
Pair Corralation between Fujian Rongji and Guocheng Mining
Assuming the 90 days trading horizon Fujian Rongji is expected to generate 1.55 times less return on investment than Guocheng Mining. In addition to that, Fujian Rongji is 1.19 times more volatile than Guocheng Mining Co. It trades about 0.03 of its total potential returns per unit of risk. Guocheng Mining Co is currently generating about 0.06 per unit of volatility. If you would invest 1,083 in Guocheng Mining Co on September 14, 2024 and sell it today you would earn a total of 517.00 from holding Guocheng Mining Co or generate 47.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Rongji Software vs. Guocheng Mining Co
Performance |
| Timeline |
| Fujian Rongji Software |
| Guocheng Mining |
Fujian Rongji and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Rongji and Guocheng Mining
The main advantage of trading using opposite Fujian Rongji and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Rongji 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.| Fujian Rongji vs. Zhuhai Comleader Information | Fujian Rongji vs. Gem Year Industrial Co | Fujian Rongji vs. Hainan Mining Co | Fujian Rongji vs. Hangzhou Gisway Information |
| Guocheng Mining vs. Servyou Software Group | Guocheng Mining vs. Fujian Rongji Software | Guocheng Mining vs. Fiberhome Telecommunication Technologies | Guocheng Mining vs. Easyhome New Retail |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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