Correlation Between Dawning Information and Guocheng Mining
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By analyzing existing cross correlation between Dawning Information Industry and Guocheng Mining Co, you can compare the effects of market volatilities on Dawning Information 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 Dawning Information with a short position of Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and Guocheng Mining.
Diversification Opportunities for Dawning Information and Guocheng Mining
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dawning and Guocheng is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining and Dawning Information 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 Dawning Information Industry 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 Dawning Information i.e., Dawning Information and Guocheng Mining go up and down completely randomly.
Pair Corralation between Dawning Information and Guocheng Mining
Assuming the 90 days trading horizon Dawning Information Industry is expected to generate 1.31 times more return on investment than Guocheng Mining. However, Dawning Information is 1.31 times more volatile than Guocheng Mining Co. It trades about 0.32 of its potential returns per unit of risk. Guocheng Mining Co is currently generating about 0.21 per unit of risk. If you would invest 6,120 in Dawning Information Industry on September 1, 2024 and sell it today you would earn a total of 2,360 from holding Dawning Information Industry or generate 38.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dawning Information Industry vs. Guocheng Mining Co
Performance |
| Timeline |
| Dawning Information |
| Guocheng Mining |
Dawning Information and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dawning Information and Guocheng Mining
The main advantage of trading using opposite Dawning Information and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning Information 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.| Dawning Information vs. Semiconductor Manufacturing Intl | Dawning Information vs. Anhui Conch Cement | Dawning Information vs. Sungrow Power Supply | Dawning Information vs. Shenzhen New Nanshan |
| Guocheng Mining vs. Kweichow Moutai Co | Guocheng Mining vs. Contemporary Amperex Technology | Guocheng Mining vs. G bits Network Technology | Guocheng Mining vs. BYD Co Ltd |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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