Correlation Between Guosheng Financial and Guilin Seamild
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By analyzing existing cross correlation between Guosheng Financial Holding and Guilin Seamild Foods, you can compare the effects of market volatilities on Guosheng Financial and Guilin Seamild 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 Guilin Seamild. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Guilin Seamild.
Diversification Opportunities for Guosheng Financial and Guilin Seamild
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guosheng and Guilin is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and Guilin Seamild Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guilin Seamild Foods 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 Guilin Seamild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guilin Seamild Foods has no effect on the direction of Guosheng Financial i.e., Guosheng Financial and Guilin Seamild go up and down completely randomly.
Pair Corralation between Guosheng Financial and Guilin Seamild
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to generate 1.54 times more return on investment than Guilin Seamild. However, Guosheng Financial is 1.54 times more volatile than Guilin Seamild Foods. It trades about 0.13 of its potential returns per unit of risk. Guilin Seamild Foods is currently generating about -0.03 per unit of risk. If you would invest 1,252 in Guosheng Financial Holding on November 4, 2024 and sell it today you would earn a total of 88.00 from holding Guosheng Financial Holding or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. Guilin Seamild Foods
Performance |
| Timeline |
| Guosheng Financial |
| Guilin Seamild Foods |
Guosheng Financial and Guilin Seamild Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Guilin Seamild
The main advantage of trading using opposite Guosheng Financial and Guilin Seamild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial position performs unexpectedly, Guilin Seamild 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 Guilin Seamild will offset losses from the drop in Guilin Seamild's long position.| Guosheng Financial vs. Gifore Agricultural Machinery | Guosheng Financial vs. Guangzhou KDT Machinery | Guosheng Financial vs. Qijing Machinery | Guosheng Financial vs. Sharetronic Data Technology |
| Guilin Seamild vs. Sportsoul Co Ltd | Guilin Seamild vs. Ningbo Ligong Online | Guilin Seamild vs. Hubeiyichang Transportation Group | Guilin Seamild vs. Lander Sports Development |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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