Correlation Between Guosheng Financial and Impulse Qingdao
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By analyzing existing cross correlation between Guosheng Financial Holding and Impulse Qingdao Health, you can compare the effects of market volatilities on Guosheng Financial and Impulse Qingdao 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 Impulse Qingdao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Impulse Qingdao.
Diversification Opportunities for Guosheng Financial and Impulse Qingdao
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guosheng and Impulse is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and Impulse Qingdao Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impulse Qingdao Health 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 Impulse Qingdao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impulse Qingdao Health has no effect on the direction of Guosheng Financial i.e., Guosheng Financial and Impulse Qingdao go up and down completely randomly.
Pair Corralation between Guosheng Financial and Impulse Qingdao
Assuming the 90 days trading horizon Guosheng Financial is expected to generate 1.24 times less return on investment than Impulse Qingdao. But when comparing it to its historical volatility, Guosheng Financial Holding is 1.03 times less risky than Impulse Qingdao. It trades about 0.14 of its potential returns per unit of risk. Impulse Qingdao Health is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,871 in Impulse Qingdao Health on September 4, 2024 and sell it today you would earn a total of 263.00 from holding Impulse Qingdao Health or generate 14.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. Impulse Qingdao Health
Performance |
| Timeline |
| Guosheng Financial |
| Impulse Qingdao Health |
Guosheng Financial and Impulse Qingdao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Impulse Qingdao
The main advantage of trading using opposite Guosheng Financial and Impulse Qingdao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial position performs unexpectedly, Impulse Qingdao 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 Impulse Qingdao will offset losses from the drop in Impulse Qingdao'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 |
| Impulse Qingdao vs. Air China Ltd | Impulse Qingdao vs. Zhejiang Qianjiang Motorcycle | Impulse Qingdao vs. GRG Banking Equipment | Impulse Qingdao 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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