| GURE Stock | | | USD 0.70 0.04 5.41% |
The correlation of Gulf Resources is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Gulf Resources Correlation With Market
Good diversification
The correlation between Gulf Resources and DJI is -0.16 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Gulf Resources and DJI in the same portfolio, assuming nothing else is changed.
Check out
Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Gulf Resources. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in metropolitan statistical area.
For information on how to trade Gulf Stock refer to our
How to Trade Gulf Stock guide.
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations | ASPI | | FGPHF | | AFPW | | EESE | | FGPHF | | AFPW | | ASPI | | AFPW |
| | High negative correlations | FGPHF | | EESE | | ASPI | | EESE | | ASPI | | AFPW | | FGPHF | | AFPW | | AFPW | | EESE |
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Risk-Adjusted IndicatorsThere is a big difference between Gulf Stock performing well and Gulf Resources Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Gulf Resources' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.