Correlation Between GuoChuang Software and Jiangxi Naipu
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By analyzing existing cross correlation between GuoChuang Software Co and Jiangxi Naipu Mining, you can compare the effects of market volatilities on GuoChuang Software and Jiangxi Naipu 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 GuoChuang Software with a short position of Jiangxi Naipu. Check out your portfolio center. Please also check ongoing floating volatility patterns of GuoChuang Software and Jiangxi Naipu.
Diversification Opportunities for GuoChuang Software and Jiangxi Naipu
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GuoChuang and Jiangxi is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding GuoChuang Software Co and Jiangxi Naipu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Naipu Mining and GuoChuang Software 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 GuoChuang Software Co are associated (or correlated) with Jiangxi Naipu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Naipu Mining has no effect on the direction of GuoChuang Software i.e., GuoChuang Software and Jiangxi Naipu go up and down completely randomly.
Pair Corralation between GuoChuang Software and Jiangxi Naipu
Assuming the 90 days trading horizon GuoChuang Software Co is expected to generate 2.18 times more return on investment than Jiangxi Naipu. However, GuoChuang Software is 2.18 times more volatile than Jiangxi Naipu Mining. It trades about 0.09 of its potential returns per unit of risk. Jiangxi Naipu Mining is currently generating about 0.14 per unit of risk. If you would invest 2,482 in GuoChuang Software Co on September 4, 2024 and sell it today you would earn a total of 192.00 from holding GuoChuang Software Co or generate 7.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GuoChuang Software Co vs. Jiangxi Naipu Mining
Performance |
| Timeline |
| GuoChuang Software |
| Jiangxi Naipu Mining |
GuoChuang Software and Jiangxi Naipu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GuoChuang Software and Jiangxi Naipu
The main advantage of trading using opposite GuoChuang Software and Jiangxi Naipu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GuoChuang Software position performs unexpectedly, Jiangxi Naipu 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 Jiangxi Naipu will offset losses from the drop in Jiangxi Naipu's long position.| GuoChuang Software vs. Jiangxi Naipu Mining | GuoChuang Software vs. Chenzhou Jingui Silver | GuoChuang Software vs. Hainan Mining Co | GuoChuang Software vs. JCHX Mining Management |
| Jiangxi Naipu vs. Pengxin International Mining | Jiangxi Naipu vs. Western Metal Materials | Jiangxi Naipu vs. Heilongjiang Transport Development | Jiangxi Naipu vs. Ye Chiu Metal |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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