Correlation Between Guosheng Financial and Taihai Manoir
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By analyzing existing cross correlation between Guosheng Financial Holding and Taihai Manoir Nuclear, you can compare the effects of market volatilities on Guosheng Financial and Taihai Manoir 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 Taihai Manoir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Taihai Manoir.
Diversification Opportunities for Guosheng Financial and Taihai Manoir
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guosheng and Taihai is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and Taihai Manoir Nuclear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taihai Manoir Nuclear 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 Taihai Manoir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taihai Manoir Nuclear has no effect on the direction of Guosheng Financial i.e., Guosheng Financial and Taihai Manoir go up and down completely randomly.
Pair Corralation between Guosheng Financial and Taihai Manoir
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to generate 1.0 times more return on investment than Taihai Manoir. However, Guosheng Financial Holding is 1.0 times less risky than Taihai Manoir. It trades about 0.3 of its potential returns per unit of risk. Taihai Manoir Nuclear is currently generating about 0.17 per unit of risk. If you would invest 1,202 in Guosheng Financial Holding on September 13, 2024 and sell it today you would earn a total of 380.00 from holding Guosheng Financial Holding or generate 31.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Guosheng Financial Holding vs. Taihai Manoir Nuclear
Performance |
| Timeline |
| Guosheng Financial |
| Taihai Manoir Nuclear |
Guosheng Financial and Taihai Manoir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Taihai Manoir
The main advantage of trading using opposite Guosheng Financial and Taihai Manoir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial position performs unexpectedly, Taihai Manoir 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 Taihai Manoir will offset losses from the drop in Taihai Manoir's long position.| Guosheng Financial vs. China Life Insurance | Guosheng Financial vs. Cinda Securities Co | Guosheng Financial vs. Piotech Inc A | Guosheng Financial vs. Dongxing Sec Co |
| Taihai Manoir vs. Yili Chuanning Biotechnology | Taihai Manoir vs. ROPEOK Technology Group | Taihai Manoir vs. Tianjin Ruixin Technology | Taihai Manoir vs. Changchun BCHT Biotechnology |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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