Correlation Between Kuang Chi and Guocheng Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kuang Chi Technologies and Guocheng Mining Co, you can compare the effects of market volatilities on Kuang Chi 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 Kuang Chi with a short position of Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuang Chi and Guocheng Mining.
Diversification Opportunities for Kuang Chi and Guocheng Mining
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kuang and Guocheng is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kuang Chi Technologies and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining and Kuang Chi 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 Kuang Chi Technologies 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 Kuang Chi i.e., Kuang Chi and Guocheng Mining go up and down completely randomly.
Pair Corralation between Kuang Chi and Guocheng Mining
Assuming the 90 days trading horizon Kuang Chi Technologies is expected to generate 1.13 times more return on investment than Guocheng Mining. However, Kuang Chi is 1.13 times more volatile than Guocheng Mining Co. It trades about 0.22 of its potential returns per unit of risk. Guocheng Mining Co is currently generating about 0.11 per unit of risk. If you would invest 1,695 in Kuang Chi Technologies on September 25, 2024 and sell it today you would earn a total of 2,701 from holding Kuang Chi Technologies or generate 159.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Kuang Chi Technologies vs. Guocheng Mining Co
Performance |
Timeline |
Kuang Chi Technologies |
Guocheng Mining |
Kuang Chi and Guocheng Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kuang Chi and Guocheng Mining
The main advantage of trading using opposite Kuang Chi and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuang Chi 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.Kuang Chi vs. ROPEOK Technology Group | Kuang Chi vs. Lotus Health Group | Kuang Chi vs. Dezhan HealthCare Co | Kuang Chi vs. By health |
Guocheng Mining vs. China State Construction | Guocheng Mining vs. Poly Real Estate | Guocheng Mining vs. China Vanke Co | Guocheng Mining vs. China Merchants Shekou |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |