Correlation Between Guosheng Financial and Shenwu Energy
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By analyzing existing cross correlation between Guosheng Financial Holding and Shenwu Energy Saving, you can compare the effects of market volatilities on Guosheng Financial and Shenwu Energy 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 Guosheng Financial with a short position of Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Shenwu Energy.
Diversification Opportunities for Guosheng Financial and Shenwu Energy
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guosheng and Shenwu is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and Shenwu Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenwu Energy Saving and Guosheng Financial 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 Guosheng Financial Holding are associated (or correlated) with Shenwu Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenwu Energy Saving has no effect on the direction of Guosheng Financial i.e., Guosheng Financial and Shenwu Energy go up and down completely randomly.
Pair Corralation between Guosheng Financial and Shenwu Energy
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to generate 0.87 times more return on investment than Shenwu Energy. However, Guosheng Financial Holding is 1.15 times less risky than Shenwu Energy. It trades about 0.06 of its potential returns per unit of risk. Shenwu Energy Saving is currently generating about 0.02 per unit of risk. 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 |
Guosheng Financial Holding vs. Shenwu Energy Saving
Performance |
| Timeline |
| Guosheng Financial |
| Shenwu Energy Saving |
Guosheng Financial and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Shenwu Energy
The main advantage of trading using opposite Guosheng Financial and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial position performs unexpectedly, Shenwu Energy 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 Shenwu Energy will offset losses from the drop in Shenwu Energy's long position.| Guosheng Financial vs. Henan Shuanghui Investment | Guosheng Financial vs. Kangping Technology Co | Guosheng Financial vs. Linewell Software Co | Guosheng Financial vs. Kuang Chi Technologies |
| Shenwu Energy vs. Tjk Machinery Tianjin | Shenwu Energy vs. Sinomach General Machinery | Shenwu Energy vs. Fujian Boss Software | Shenwu Energy vs. Masterwork Machinery |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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