Correlation Between GRINM Semiconductor and Guocheng Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between GRINM Semiconductor Materials and Guocheng Mining Co, you can compare the effects of market volatilities on GRINM Semiconductor 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 GRINM Semiconductor with a short position of Guocheng Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRINM Semiconductor and Guocheng Mining.
Diversification Opportunities for GRINM Semiconductor and Guocheng Mining
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GRINM and Guocheng is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding GRINM Semiconductor Materials and Guocheng Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guocheng Mining and GRINM Semiconductor 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 GRINM Semiconductor Materials 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 GRINM Semiconductor i.e., GRINM Semiconductor and Guocheng Mining go up and down completely randomly.
Pair Corralation between GRINM Semiconductor and Guocheng Mining
Assuming the 90 days trading horizon GRINM Semiconductor is expected to generate 1.4 times less return on investment than Guocheng Mining. In addition to that, GRINM Semiconductor is 1.23 times more volatile than Guocheng Mining Co. It trades about 0.15 of its total potential returns per unit of risk. Guocheng Mining Co is currently generating about 0.27 per unit of volatility. If you would invest 889.00 in Guocheng Mining Co on September 13, 2024 and sell it today you would earn a total of 641.00 from holding Guocheng Mining Co or generate 72.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
GRINM Semiconductor Materials vs. Guocheng Mining Co
Performance |
Timeline |
GRINM Semiconductor |
Guocheng Mining |
GRINM Semiconductor and Guocheng Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GRINM Semiconductor and Guocheng Mining
The main advantage of trading using opposite GRINM Semiconductor and Guocheng Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRINM Semiconductor 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.GRINM Semiconductor vs. Ye Chiu Metal | GRINM Semiconductor vs. Pengxin International Mining | GRINM Semiconductor vs. Guosheng Financial Holding | GRINM Semiconductor vs. Unisplendour Corp |
Guocheng Mining vs. Cambricon Technologies Corp | Guocheng Mining vs. Loongson Technology Corp | Guocheng Mining vs. Shenzhen Fortune Trend | Guocheng Mining vs. Chongqing Road Bridge |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |