Correlation Between Guosheng Financial and Shanghai Yaoji
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guosheng Financial Holding and Shanghai Yaoji Playing, you can compare the effects of market volatilities on Guosheng Financial and Shanghai Yaoji 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 Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Shanghai Yaoji.
Diversification Opportunities for Guosheng Financial and Shanghai Yaoji
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guosheng and Shanghai is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing 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 Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of Guosheng Financial i.e., Guosheng Financial and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between Guosheng Financial and Shanghai Yaoji
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to under-perform the Shanghai Yaoji. In addition to that, Guosheng Financial is 1.36 times more volatile than Shanghai Yaoji Playing. It trades about -0.54 of its total potential returns per unit of risk. Shanghai Yaoji Playing is currently generating about -0.52 per unit of volatility. If you would invest 3,418 in Shanghai Yaoji Playing on October 14, 2024 and sell it today you would lose (958.00) from holding Shanghai Yaoji Playing or give up 28.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. Shanghai Yaoji Playing
Performance |
| Timeline |
| Guosheng Financial |
| Shanghai Yaoji Playing |
Guosheng Financial and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Shanghai Yaoji
The main advantage of trading using opposite Guosheng Financial and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial position performs unexpectedly, Shanghai Yaoji 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 Shanghai Yaoji will offset losses from the drop in Shanghai Yaoji's long position.| Guosheng Financial vs. BYD Co Ltd | Guosheng Financial vs. China Mobile Limited | Guosheng Financial vs. Agricultural Bank of | Guosheng Financial vs. Industrial and Commercial |
| Shanghai Yaoji vs. Anhui Jianghuai Automobile | Shanghai Yaoji vs. Hainan Airlines Co | Shanghai Yaoji vs. Xiandai Investment Co | Shanghai Yaoji vs. Xiangyang Automobile Bearing |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |