Correlation Between Guocheng Mining and Kingclean Electric
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By analyzing existing cross correlation between Guocheng Mining Co and Kingclean Electric Co, you can compare the effects of market volatilities on Guocheng Mining and Kingclean Electric 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 Guocheng Mining with a short position of Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guocheng Mining and Kingclean Electric.
Diversification Opportunities for Guocheng Mining and Kingclean Electric
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guocheng and Kingclean is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Guocheng Mining Co and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric and Guocheng Mining 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 Guocheng Mining Co are associated (or correlated) with Kingclean Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingclean Electric has no effect on the direction of Guocheng Mining i.e., Guocheng Mining and Kingclean Electric go up and down completely randomly.
Pair Corralation between Guocheng Mining and Kingclean Electric
Assuming the 90 days trading horizon Guocheng Mining Co is expected to generate 1.71 times more return on investment than Kingclean Electric. However, Guocheng Mining is 1.71 times more volatile than Kingclean Electric Co. It trades about 0.2 of its potential returns per unit of risk. Kingclean Electric Co is currently generating about 0.07 per unit of risk. If you would invest 927.00 in Guocheng Mining Co on September 20, 2024 and sell it today you would earn a total of 547.00 from holding Guocheng Mining Co or generate 59.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Guocheng Mining Co vs. Kingclean Electric Co
Performance |
Timeline |
Guocheng Mining |
Kingclean Electric |
Guocheng Mining and Kingclean Electric Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guocheng Mining and Kingclean Electric
The main advantage of trading using opposite Guocheng Mining and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guocheng Mining position performs unexpectedly, Kingclean Electric 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 Kingclean Electric will offset losses from the drop in Kingclean Electric's long position.Guocheng Mining vs. Cambricon Technologies Corp | Guocheng Mining vs. Loongson Technology Corp | Guocheng Mining vs. Shenzhen Fortune Trend | Guocheng Mining vs. Chongqing Road Bridge |
Kingclean Electric vs. Liuzhou Chemical Industry | Kingclean Electric vs. Jiangsu Financial Leasing | Kingclean Electric vs. North Huajin Chemical | Kingclean Electric vs. Panda Financial Holding |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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