Correlation Between HUAQIN TECHNOLOGY and Guocheng Mining
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By analyzing existing cross correlation between HUAQIN TECHNOLOGY LTD and Guocheng Mining Co, you can compare the effects of market volatilities on HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY with a short position of Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUAQIN TECHNOLOGY and Guocheng Mining.
Diversification Opportunities for HUAQIN TECHNOLOGY and Guocheng Mining
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUAQIN and Guocheng is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding HUAQIN TECHNOLOGY LTD and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining and HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY LTD 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 HUAQIN TECHNOLOGY i.e., HUAQIN TECHNOLOGY and Guocheng Mining go up and down completely randomly.
Pair Corralation between HUAQIN TECHNOLOGY and Guocheng Mining
Assuming the 90 days trading horizon HUAQIN TECHNOLOGY LTD is expected to generate 1.3 times more return on investment than Guocheng Mining. However, HUAQIN TECHNOLOGY is 1.3 times more volatile than Guocheng Mining Co. It trades about 0.17 of its potential returns per unit of risk. Guocheng Mining Co is currently generating about -0.36 per unit of risk. If you would invest 6,051 in HUAQIN TECHNOLOGY LTD on October 18, 2024 and sell it today you would earn a total of 873.00 from holding HUAQIN TECHNOLOGY LTD or generate 14.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUAQIN TECHNOLOGY LTD vs. Guocheng Mining Co
Performance |
| Timeline |
| HUAQIN TECHNOLOGY LTD |
| Guocheng Mining |
HUAQIN TECHNOLOGY and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUAQIN TECHNOLOGY and Guocheng Mining
The main advantage of trading using opposite HUAQIN TECHNOLOGY and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUAQIN TECHNOLOGY 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.| HUAQIN TECHNOLOGY vs. Sharetronic Data Technology | HUAQIN TECHNOLOGY vs. Sichuan Furong Technology | HUAQIN TECHNOLOGY vs. Emdoor Information Co | HUAQIN TECHNOLOGY vs. Guodian Nanjing Automation |
| Guocheng Mining vs. Luyin Investment Group | Guocheng Mining vs. Fiberhome Telecommunication Technologies | Guocheng Mining vs. Beijing Bewinner Communications | Guocheng Mining vs. Jiangsu Yanghe Brewery |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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