Correlation Between Guosheng Financial and Ningbo Tech
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By analyzing existing cross correlation between Guosheng Financial Holding and Ningbo Tech Bank Co, you can compare the effects of market volatilities on Guosheng Financial and Ningbo Tech 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 Ningbo Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Ningbo Tech.
Diversification Opportunities for Guosheng Financial and Ningbo Tech
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guosheng and Ningbo is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and Ningbo Tech Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tech Bank 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 Ningbo Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tech Bank has no effect on the direction of Guosheng Financial i.e., Guosheng Financial and Ningbo Tech go up and down completely randomly.
Pair Corralation between Guosheng Financial and Ningbo Tech
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to generate 1.32 times more return on investment than Ningbo Tech. However, Guosheng Financial is 1.32 times more volatile than Ningbo Tech Bank Co. It trades about 0.14 of its potential returns per unit of risk. Ningbo Tech Bank Co is currently generating about 0.09 per unit of risk. If you would invest 1,162 in Guosheng Financial Holding on September 5, 2024 and sell it today you would earn a total of 128.00 from holding Guosheng Financial Holding or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. Ningbo Tech Bank Co
Performance |
| Timeline |
| Guosheng Financial |
| Ningbo Tech Bank |
Guosheng Financial and Ningbo Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Ningbo Tech
The main advantage of trading using opposite Guosheng Financial and Ningbo Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial position performs unexpectedly, Ningbo Tech 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 Ningbo Tech will offset losses from the drop in Ningbo Tech's long position.| Guosheng Financial vs. Xinke Material | Guosheng Financial vs. Fuda Alloy Materials | Guosheng Financial vs. Shenzhen SDG Information | Guosheng Financial vs. Yonyou Auto Information |
| Ningbo Tech vs. Bomin Electronics Co | Ningbo Tech vs. Fuzhou Rockchip Electronics | Ningbo Tech vs. Guangzhou Zhujiang Brewery | Ningbo Tech vs. Leaguer Shenzhen MicroElectronics |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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