Correlation Between Guosheng Financial and Hubeiyichang Transportation
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By analyzing existing cross correlation between Guosheng Financial Holding and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Guosheng Financial and Hubeiyichang Transportation 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 Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Hubeiyichang Transportation.
Diversification Opportunities for Guosheng Financial and Hubeiyichang Transportation
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guosheng and Hubeiyichang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation 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 Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Guosheng Financial i.e., Guosheng Financial and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Guosheng Financial and Hubeiyichang Transportation
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to generate 2.73 times more return on investment than Hubeiyichang Transportation. However, Guosheng Financial is 2.73 times more volatile than Hubeiyichang Transportation Group. It trades about 0.14 of its potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about 0.26 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Guosheng Financial |
| Hubeiyichang Transportation |
Guosheng Financial and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Hubeiyichang Transportation
The main advantage of trading using opposite Guosheng Financial and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation'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 |
| Hubeiyichang Transportation vs. Ming Yang Smart | Hubeiyichang Transportation vs. 159681 | Hubeiyichang Transportation vs. 159005 | Hubeiyichang Transportation vs. Loctek Ergonomic 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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