Correlation Between Shanghai Yaoji and Guosheng Financial
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By analyzing existing cross correlation between Shanghai Yaoji Playing and Guosheng Financial Holding, you can compare the effects of market volatilities on Shanghai Yaoji 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 Shanghai Yaoji with a short position of Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and Guosheng Financial.
Diversification Opportunities for Shanghai Yaoji and Guosheng Financial
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and Guosheng is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial and Shanghai Yaoji 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 Shanghai Yaoji Playing 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 Shanghai Yaoji i.e., Shanghai Yaoji and Guosheng Financial go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and Guosheng Financial
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to generate 1.04 times more return on investment than Guosheng Financial. However, Shanghai Yaoji is 1.04 times more volatile than Guosheng Financial Holding. It trades about 0.07 of its potential returns per unit of risk. Guosheng Financial Holding is currently generating about 0.05 per unit of risk. If you would invest 2,734 in Shanghai Yaoji Playing on October 28, 2024 and sell it today you would earn a total of 116.00 from holding Shanghai Yaoji Playing or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yaoji Playing vs. Guosheng Financial Holding
Performance |
| Timeline |
| Shanghai Yaoji Playing |
| Guosheng Financial |
Shanghai Yaoji and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yaoji and Guosheng Financial
The main advantage of trading using opposite Shanghai Yaoji and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji 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.| Shanghai Yaoji vs. Wuhan Hvsen Biotechnology | Shanghai Yaoji vs. Shandong Sanyuan Biotechnology | Shanghai Yaoji vs. Changchun BCHT Biotechnology | Shanghai Yaoji vs. Jiugui Liquor Co |
| Guosheng Financial vs. Sinomach Automobile Co | Guosheng Financial vs. JCHX Mining Management | Guosheng Financial vs. Guangzhou Haozhi Industrial | Guosheng Financial vs. Anhui Jinhe Industrial |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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