Correlation Between Guilin Seamild and Uroica Mining
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By analyzing existing cross correlation between Guilin Seamild Foods and Uroica Mining Safety, you can compare the effects of market volatilities on Guilin Seamild and Uroica 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 Guilin Seamild with a short position of Uroica Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Uroica Mining.
Diversification Opportunities for Guilin Seamild and Uroica Mining
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guilin and Uroica is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Uroica Mining Safety in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uroica Mining Safety and Guilin Seamild 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 Guilin Seamild Foods are associated (or correlated) with Uroica Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uroica Mining Safety has no effect on the direction of Guilin Seamild i.e., Guilin Seamild and Uroica Mining go up and down completely randomly.
Pair Corralation between Guilin Seamild and Uroica Mining
Assuming the 90 days trading horizon Guilin Seamild is expected to generate 10.06 times less return on investment than Uroica Mining. But when comparing it to its historical volatility, Guilin Seamild Foods is 1.31 times less risky than Uroica Mining. It trades about 0.0 of its potential returns per unit of risk. Uroica Mining Safety is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 606.00 in Uroica Mining Safety on August 31, 2024 and sell it today you would earn a total of 90.00 from holding Uroica Mining Safety or generate 14.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Uroica Mining Safety
Performance |
| Timeline |
| Guilin Seamild Foods |
| Uroica Mining Safety |
Guilin Seamild and Uroica Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Uroica Mining
The main advantage of trading using opposite Guilin Seamild and Uroica Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild position performs unexpectedly, Uroica 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 Uroica Mining will offset losses from the drop in Uroica Mining's long position.| Guilin Seamild vs. Lutian Machinery Co | Guilin Seamild vs. PetroChina Co Ltd | Guilin Seamild vs. Bank of China | Guilin Seamild vs. Gansu Jiu Steel |
| Uroica Mining vs. Cultural Investment Holdings | Uroica Mining vs. Gome Telecom Equipment | Uroica Mining vs. Bus Online Co | Uroica Mining vs. Holitech Technology 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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