Correlation Between Shenwu Energy and Guosheng Financial
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By analyzing existing cross correlation between Shenwu Energy Saving and Guosheng Financial Holding, you can compare the effects of market volatilities on Shenwu Energy and Guosheng Financial 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 Shenwu Energy with a short position of Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenwu Energy and Guosheng Financial.
Diversification Opportunities for Shenwu Energy and Guosheng Financial
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shenwu and Guosheng is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Shenwu Energy Saving and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial and Shenwu Energy 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 Shenwu Energy Saving are associated (or correlated) with Guosheng Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guosheng Financial has no effect on the direction of Shenwu Energy i.e., Shenwu Energy and Guosheng Financial go up and down completely randomly.
Pair Corralation between Shenwu Energy and Guosheng Financial
Assuming the 90 days trading horizon Shenwu Energy is expected to generate 2.68 times less return on investment than Guosheng Financial. In addition to that, Shenwu Energy is 1.15 times more volatile than Guosheng Financial Holding. It trades about 0.02 of its total potential returns per unit of risk. Guosheng Financial Holding is currently generating about 0.06 per unit of volatility. If you would invest 937.00 in Guosheng Financial Holding on November 3, 2024 and sell it today you would earn a total of 403.00 from holding Guosheng Financial Holding or generate 43.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenwu Energy Saving vs. Guosheng Financial Holding
Performance |
| Timeline |
| Shenwu Energy Saving |
| Guosheng Financial |
Shenwu Energy and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenwu Energy and Guosheng Financial
The main advantage of trading using opposite Shenwu Energy and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenwu Energy position performs unexpectedly, Guosheng Financial 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 Guosheng Financial will offset losses from the drop in Guosheng Financial's long position.| Shenwu Energy vs. Tjk Machinery Tianjin | Shenwu Energy vs. Sinomach General Machinery | Shenwu Energy vs. Fujian Boss Software | Shenwu Energy vs. Masterwork Machinery |
| Guosheng Financial vs. Henan Shuanghui Investment | Guosheng Financial vs. Kangping Technology Co | Guosheng Financial vs. Linewell Software Co | Guosheng Financial vs. Kuang Chi Technologies |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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