Correlation Between Eyebright Medical and Guocheng Mining
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By analyzing existing cross correlation between Eyebright Medical Technology and Guocheng Mining Co, you can compare the effects of market volatilities on Eyebright Medical 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 Eyebright Medical with a short position of Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eyebright Medical and Guocheng Mining.
Diversification Opportunities for Eyebright Medical and Guocheng Mining
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eyebright and Guocheng is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Eyebright Medical Technology and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining and Eyebright Medical 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 Eyebright Medical Technology 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 Eyebright Medical i.e., Eyebright Medical and Guocheng Mining go up and down completely randomly.
Pair Corralation between Eyebright Medical and Guocheng Mining
Assuming the 90 days trading horizon Eyebright Medical Technology is expected to generate 0.66 times more return on investment than Guocheng Mining. However, Eyebright Medical Technology is 1.51 times less risky than Guocheng Mining. It trades about 0.05 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 9,128 in Eyebright Medical Technology on October 30, 2024 and sell it today you would earn a total of 351.00 from holding Eyebright Medical Technology or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eyebright Medical Technology vs. Guocheng Mining Co
Performance |
| Timeline |
| Eyebright Medical |
| Guocheng Mining |
Eyebright Medical and Guocheng Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eyebright Medical and Guocheng Mining
The main advantage of trading using opposite Eyebright Medical and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eyebright Medical 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.| Eyebright Medical vs. Bingo Software Co | Eyebright Medical vs. Dareway Software Co | Eyebright Medical vs. Kuang Chi Technologies | Eyebright Medical vs. Zhejiang JIULI Hi tech |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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