Correlation Between Guosheng Financial and Yankershop Food
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By analyzing existing cross correlation between Guosheng Financial Holding and Yankershop Food Co, you can compare the effects of market volatilities on Guosheng Financial and Yankershop Food 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 Yankershop Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Yankershop Food.
Diversification Opportunities for Guosheng Financial and Yankershop Food
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guosheng and Yankershop is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and Yankershop Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yankershop Food 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 Yankershop Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yankershop Food has no effect on the direction of Guosheng Financial i.e., Guosheng Financial and Yankershop Food go up and down completely randomly.
Pair Corralation between Guosheng Financial and Yankershop Food
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to generate 1.31 times more return on investment than Yankershop Food. However, Guosheng Financial is 1.31 times more volatile than Yankershop Food Co. It trades about 0.2 of its potential returns per unit of risk. Yankershop Food Co is currently generating about 0.16 per unit of risk. If you would invest 1,342 in Guosheng Financial Holding on November 29, 2024 and sell it today you would earn a total of 108.00 from holding Guosheng Financial Holding or generate 8.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. Yankershop Food Co
Performance |
| Timeline |
| Guosheng Financial |
| Yankershop Food |
Guosheng Financial and Yankershop Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Yankershop Food
The main advantage of trading using opposite Guosheng Financial and Yankershop Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial position performs unexpectedly, Yankershop Food 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 Yankershop Food will offset losses from the drop in Yankershop Food's long position.| Guosheng Financial vs. Allied Machinery Co | Guosheng Financial vs. Beijing Bewinner Communications | Guosheng Financial vs. Linzhou Heavy Machinery | Guosheng Financial vs. Runjian Communication Co |
| Yankershop Food vs. National Silicon Industry | Yankershop Food vs. HeBei Jinniu Chemical | Yankershop Food vs. Biwin Storage Technology | Yankershop Food vs. Ningbo Ligong Online |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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