Correlation Between Guosheng Financial and Jiangsu Changfa
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guosheng Financial Holding and Jiangsu Changfa Refrigeration, you can compare the effects of market volatilities on Guosheng Financial and Jiangsu Changfa 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 Jiangsu Changfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Jiangsu Changfa.
Diversification Opportunities for Guosheng Financial and Jiangsu Changfa
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guosheng and Jiangsu is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and Jiangsu Changfa Refrigeration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Changfa Refr 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 Jiangsu Changfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Changfa Refr has no effect on the direction of Guosheng Financial i.e., Guosheng Financial and Jiangsu Changfa go up and down completely randomly.
Pair Corralation between Guosheng Financial and Jiangsu Changfa
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to generate 1.2 times more return on investment than Jiangsu Changfa. However, Guosheng Financial is 1.2 times more volatile than Jiangsu Changfa Refrigeration. It trades about 0.1 of its potential returns per unit of risk. Jiangsu Changfa Refrigeration is currently generating about 0.1 per unit of risk. If you would invest 907.00 in Guosheng Financial Holding on September 4, 2024 and sell it today you would earn a total of 383.00 from holding Guosheng Financial Holding or generate 42.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. Jiangsu Changfa Refrigeration
Performance |
| Timeline |
| Guosheng Financial |
| Jiangsu Changfa Refr |
Guosheng Financial and Jiangsu Changfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Jiangsu Changfa
The main advantage of trading using opposite Guosheng Financial and Jiangsu Changfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial position performs unexpectedly, Jiangsu Changfa 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 Jiangsu Changfa will offset losses from the drop in Jiangsu Changfa's long position.| Guosheng Financial vs. Holitech Technology Co | Guosheng Financial vs. Kangping Technology Co | Guosheng Financial vs. Niutech Environment Technology | Guosheng Financial vs. Chahua Modern Housewares |
| Jiangsu Changfa vs. China Construction Bank | Jiangsu Changfa vs. Qingdao Citymedia Co | Jiangsu Changfa vs. Duzhe Publishing Media | Jiangsu Changfa vs. Guosheng Financial Holding |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |