Correlation Between Guosheng Financial and HeNan Splendor
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By analyzing existing cross correlation between Guosheng Financial Holding and HeNan Splendor Science, you can compare the effects of market volatilities on Guosheng Financial and HeNan Splendor 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 HeNan Splendor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and HeNan Splendor.
Diversification Opportunities for Guosheng Financial and HeNan Splendor
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guosheng and HeNan is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and HeNan Splendor Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeNan Splendor Science 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 HeNan Splendor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeNan Splendor Science has no effect on the direction of Guosheng Financial i.e., Guosheng Financial and HeNan Splendor go up and down completely randomly.
Pair Corralation between Guosheng Financial and HeNan Splendor
Assuming the 90 days trading horizon Guosheng Financial is expected to generate 18.86 times less return on investment than HeNan Splendor. In addition to that, Guosheng Financial is 1.09 times more volatile than HeNan Splendor Science. It trades about 0.01 of its total potential returns per unit of risk. HeNan Splendor Science is currently generating about 0.17 per unit of volatility. 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 |
Guosheng Financial Holding vs. HeNan Splendor Science
Performance |
| Timeline |
| Guosheng Financial |
| HeNan Splendor Science |
Guosheng Financial and HeNan Splendor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and HeNan Splendor
The main advantage of trading using opposite Guosheng Financial and HeNan Splendor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial position performs unexpectedly, HeNan Splendor 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 HeNan Splendor will offset losses from the drop in HeNan Splendor'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 |
| HeNan Splendor vs. Suzhou Oriental Semiconductor | HeNan Splendor vs. Emdoor Information Co | HeNan Splendor vs. Invengo Information Technology | HeNan Splendor vs. Bonree Data Technology |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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