Correlation Between Dhc Software and Guosheng Financial
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By analyzing existing cross correlation between Dhc Software Co and Guosheng Financial Holding, you can compare the effects of market volatilities on Dhc Software 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 Dhc Software with a short position of Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dhc Software and Guosheng Financial.
Diversification Opportunities for Dhc Software and Guosheng Financial
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dhc and Guosheng is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Dhc Software Co and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial and Dhc Software 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 Dhc Software Co 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 Dhc Software i.e., Dhc Software and Guosheng Financial go up and down completely randomly.
Pair Corralation between Dhc Software and Guosheng Financial
Assuming the 90 days trading horizon Dhc Software Co is expected to under-perform the Guosheng Financial. But the stock apears to be less risky and, when comparing its historical volatility, Dhc Software Co is 2.41 times less risky than Guosheng Financial. The stock trades about -0.31 of its potential returns per unit of risk. The Guosheng Financial Holding is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,307 in Guosheng Financial Holding on October 10, 2024 and sell it today you would lose (53.00) from holding Guosheng Financial Holding or give up 4.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dhc Software Co vs. Guosheng Financial Holding
Performance |
| Timeline |
| Dhc Software |
| Guosheng Financial |
Dhc Software and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dhc Software and Guosheng Financial
The main advantage of trading using opposite Dhc Software and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dhc Software 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.| Dhc Software vs. Puya Semiconductor Shanghai | Dhc Software vs. Shanghai V Test Semiconductor | Dhc Software vs. GigaDevice SemiconductorBeiji | Dhc Software vs. Nexchip Semiconductor Corp |
| Guosheng Financial vs. BYD Co Ltd | Guosheng Financial vs. China Mobile Limited | Guosheng Financial vs. Agricultural Bank of | Guosheng Financial vs. Industrial and Commercial |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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