Correlation Between Guosheng Financial and Shenzhen Bioeasy
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By analyzing existing cross correlation between Guosheng Financial Holding and Shenzhen Bioeasy Biotechnology, you can compare the effects of market volatilities on Guosheng Financial and Shenzhen Bioeasy 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 Shenzhen Bioeasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Shenzhen Bioeasy.
Diversification Opportunities for Guosheng Financial and Shenzhen Bioeasy
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guosheng and Shenzhen is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and Shenzhen Bioeasy Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bioeasy Bio 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 Shenzhen Bioeasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bioeasy Bio has no effect on the direction of Guosheng Financial i.e., Guosheng Financial and Shenzhen Bioeasy go up and down completely randomly.
Pair Corralation between Guosheng Financial and Shenzhen Bioeasy
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to generate 1.25 times more return on investment than Shenzhen Bioeasy. However, Guosheng Financial is 1.25 times more volatile than Shenzhen Bioeasy Biotechnology. It trades about 0.04 of its potential returns per unit of risk. Shenzhen Bioeasy Biotechnology is currently generating about -0.18 per unit of risk. If you would invest 1,357 in Guosheng Financial Holding on October 22, 2024 and sell it today you would earn a total of 19.00 from holding Guosheng Financial Holding or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. Shenzhen Bioeasy Biotechnology
Performance |
| Timeline |
| Guosheng Financial |
| Shenzhen Bioeasy Bio |
Guosheng Financial and Shenzhen Bioeasy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Shenzhen Bioeasy
The main advantage of trading using opposite Guosheng Financial and Shenzhen Bioeasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial position performs unexpectedly, Shenzhen Bioeasy 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 Shenzhen Bioeasy will offset losses from the drop in Shenzhen Bioeasy's long position.| Guosheng Financial vs. Fuda Alloy Materials | Guosheng Financial vs. Orinko Advanced Plastics | Guosheng Financial vs. GRIPM Advanced Materials | Guosheng Financial vs. Easyhome New Retail |
| Shenzhen Bioeasy vs. Shenwu Energy Saving | Shenzhen Bioeasy vs. Guosheng Financial Holding | Shenzhen Bioeasy vs. Pengxin International Mining | Shenzhen Bioeasy vs. Agricultural Bank of |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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