Correlation Between Hunan Mendale and Guosheng Financial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hunan Mendale Hometextile and Guosheng Financial Holding, you can compare the effects of market volatilities on Hunan Mendale 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 Hunan Mendale with a short position of Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Mendale and Guosheng Financial.
Diversification Opportunities for Hunan Mendale and Guosheng Financial
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hunan and Guosheng is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Mendale Hometextile and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial and Hunan Mendale 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 Hunan Mendale Hometextile 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 Hunan Mendale i.e., Hunan Mendale and Guosheng Financial go up and down completely randomly.
Pair Corralation between Hunan Mendale and Guosheng Financial
Assuming the 90 days trading horizon Hunan Mendale Hometextile is expected to generate 1.84 times more return on investment than Guosheng Financial. However, Hunan Mendale is 1.84 times more volatile than Guosheng Financial Holding. It trades about 0.14 of its potential returns per unit of risk. Guosheng Financial Holding is currently generating about 0.02 per unit of risk. If you would invest 287.00 in Hunan Mendale Hometextile on October 23, 2024 and sell it today you would earn a total of 44.00 from holding Hunan Mendale Hometextile or generate 15.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Mendale Hometextile vs. Guosheng Financial Holding
Performance |
| Timeline |
| Hunan Mendale Hometextile |
| Guosheng Financial |
Hunan Mendale and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Mendale and Guosheng Financial
The main advantage of trading using opposite Hunan Mendale and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Mendale 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.| Hunan Mendale vs. Kingclean Electric Co | Hunan Mendale vs. Dhc Software Co | Hunan Mendale vs. Sinofibers Technology Co | Hunan Mendale vs. Shaanxi Meineng Clean |
| Guosheng Financial vs. China Eastern Airlines | Guosheng Financial vs. Gem Year Industrial Co | Guosheng Financial vs. Sichuan Yahua Industrial | Guosheng Financial vs. Mango Excellent Media |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |