Correlation Between Strait Innovation and Guocheng Mining
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By analyzing existing cross correlation between Strait Innovation Internet and Guocheng Mining Co, you can compare the effects of market volatilities on Strait Innovation 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 Strait Innovation with a short position of Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strait Innovation and Guocheng Mining.
Diversification Opportunities for Strait Innovation and Guocheng Mining
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Strait and Guocheng is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Strait Innovation Internet and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining and Strait Innovation 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 Strait Innovation Internet 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 Strait Innovation i.e., Strait Innovation and Guocheng Mining go up and down completely randomly.
Pair Corralation between Strait Innovation and Guocheng Mining
Assuming the 90 days trading horizon Strait Innovation Internet is expected to generate 1.1 times more return on investment than Guocheng Mining. However, Strait Innovation is 1.1 times more volatile than Guocheng Mining Co. It trades about 0.31 of its potential returns per unit of risk. Guocheng Mining Co is currently generating about 0.11 per unit of risk. If you would invest 245.00 in Strait Innovation Internet on November 5, 2024 and sell it today you would earn a total of 38.00 from holding Strait Innovation Internet or generate 15.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strait Innovation Internet vs. Guocheng Mining Co
Performance |
| Timeline |
| Strait Innovation |
| Guocheng Mining |
Strait Innovation and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strait Innovation and Guocheng Mining
The main advantage of trading using opposite Strait Innovation and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strait Innovation 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.| Strait Innovation vs. Shandong Sinoglory Health | Strait Innovation vs. Lotus Health Group | Strait Innovation vs. Dezhan HealthCare Co | Strait Innovation vs. De Rucci Healthy |
| Guocheng Mining vs. Beingmate Baby Child | Guocheng Mining vs. Xinjiang Baodi Mining | Guocheng Mining vs. Guangzhou Haige Communications | Guocheng Mining vs. JCHX Mining Management |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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