Correlation Between Zhejiang Gongdong and Guocheng Mining
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By analyzing existing cross correlation between Zhejiang Gongdong Medical and Guocheng Mining Co, you can compare the effects of market volatilities on Zhejiang Gongdong 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 Zhejiang Gongdong with a short position of Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Gongdong and Guocheng Mining.
Diversification Opportunities for Zhejiang Gongdong and Guocheng Mining
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhejiang and Guocheng is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Gongdong Medical and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining and Zhejiang Gongdong 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 Zhejiang Gongdong Medical 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 Zhejiang Gongdong i.e., Zhejiang Gongdong and Guocheng Mining go up and down completely randomly.
Pair Corralation between Zhejiang Gongdong and Guocheng Mining
Assuming the 90 days trading horizon Zhejiang Gongdong Medical is expected to generate 0.51 times more return on investment than Guocheng Mining. However, Zhejiang Gongdong Medical is 1.98 times less risky than Guocheng Mining. It trades about -0.04 of its potential returns per unit of risk. Guocheng Mining Co is currently generating about -0.1 per unit of risk. If you would invest 3,078 in Zhejiang Gongdong Medical on October 30, 2024 and sell it today you would lose (120.00) from holding Zhejiang Gongdong Medical or give up 3.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Gongdong Medical vs. Guocheng Mining Co
Performance |
| Timeline |
| Zhejiang Gongdong Medical |
| Guocheng Mining |
Zhejiang Gongdong and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Gongdong and Guocheng Mining
The main advantage of trading using opposite Zhejiang Gongdong and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Gongdong 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.| Zhejiang Gongdong vs. Agricultural Bank of | Zhejiang Gongdong vs. Industrial and Commercial | Zhejiang Gongdong vs. Bank of China | Zhejiang Gongdong vs. China Construction Bank |
| Guocheng Mining vs. UCloud Technology Co | Guocheng Mining vs. Dymatic Chemicals | Guocheng Mining vs. Northking Information Technology | Guocheng Mining vs. Jinyu Bio Technology Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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