Correlation Between Hainan Mining and GuoChuang Software
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By analyzing existing cross correlation between Hainan Mining Co and GuoChuang Software Co, you can compare the effects of market volatilities on Hainan Mining and GuoChuang Software 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 Hainan Mining with a short position of GuoChuang Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and GuoChuang Software.
Diversification Opportunities for Hainan Mining and GuoChuang Software
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hainan and GuoChuang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co and GuoChuang Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GuoChuang Software and Hainan Mining 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 Hainan Mining Co are associated (or correlated) with GuoChuang Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GuoChuang Software has no effect on the direction of Hainan Mining i.e., Hainan Mining and GuoChuang Software go up and down completely randomly.
Pair Corralation between Hainan Mining and GuoChuang Software
Assuming the 90 days trading horizon Hainan Mining Co is expected to generate 0.59 times more return on investment than GuoChuang Software. However, Hainan Mining Co is 1.69 times less risky than GuoChuang Software. It trades about 0.17 of its potential returns per unit of risk. GuoChuang Software Co is currently generating about 0.09 per unit of risk. If you would invest 700.00 in Hainan Mining Co on September 4, 2024 and sell it today you would earn a total of 73.00 from holding Hainan Mining Co or generate 10.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. GuoChuang Software Co
Performance |
| Timeline |
| Hainan Mining |
| GuoChuang Software |
Hainan Mining and GuoChuang Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and GuoChuang Software
The main advantage of trading using opposite Hainan Mining and GuoChuang Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining position performs unexpectedly, GuoChuang Software 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 GuoChuang Software will offset losses from the drop in GuoChuang Software's long position.| Hainan Mining vs. Zijin Mining Group | Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Baoshan Iron Steel | Hainan Mining vs. Rongsheng Petrochemical Co |
| GuoChuang Software vs. Jiangxi Naipu Mining | GuoChuang Software vs. Chenzhou Jingui Silver | GuoChuang Software vs. Hainan Mining Co | GuoChuang Software 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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