Correlation Between HeNan Splendor and Guosheng Financial
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By analyzing existing cross correlation between HeNan Splendor Science and Guosheng Financial Holding, you can compare the effects of market volatilities on HeNan Splendor 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 HeNan Splendor with a short position of Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeNan Splendor and Guosheng Financial.
Diversification Opportunities for HeNan Splendor and Guosheng Financial
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HeNan and Guosheng is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding HeNan Splendor Science and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial and HeNan Splendor 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 HeNan Splendor Science 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 HeNan Splendor i.e., HeNan Splendor and Guosheng Financial go up and down completely randomly.
Pair Corralation between HeNan Splendor and Guosheng Financial
Assuming the 90 days trading horizon HeNan Splendor Science is expected to generate 0.92 times more return on investment than Guosheng Financial. However, HeNan Splendor Science is 1.09 times less risky than Guosheng Financial. It trades about 0.17 of its potential returns per unit of risk. Guosheng Financial Holding is currently generating about 0.01 per unit of risk. If you would invest 947.00 in HeNan Splendor Science on November 3, 2024 and sell it today you would earn a total of 101.00 from holding HeNan Splendor Science or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeNan Splendor Science vs. Guosheng Financial Holding
Performance |
| Timeline |
| HeNan Splendor Science |
| Guosheng Financial |
HeNan Splendor and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeNan Splendor and Guosheng Financial
The main advantage of trading using opposite HeNan Splendor and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeNan Splendor 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.| HeNan Splendor vs. Suzhou Oriental Semiconductor | HeNan Splendor vs. Emdoor Information Co | HeNan Splendor vs. Invengo Information Technology | HeNan Splendor vs. Bonree Data Technology |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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