Correlation Between Guosheng Financial and CIMC Vehicles
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By analyzing existing cross correlation between Guosheng Financial Holding and CIMC Vehicles Co, you can compare the effects of market volatilities on Guosheng Financial and CIMC Vehicles 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 CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and CIMC Vehicles.
Diversification Opportunities for Guosheng Financial and CIMC Vehicles
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guosheng and CIMC is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles 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 CIMC Vehicles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMC Vehicles has no effect on the direction of Guosheng Financial i.e., Guosheng Financial and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Guosheng Financial and CIMC Vehicles
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to generate 1.2 times more return on investment than CIMC Vehicles. However, Guosheng Financial is 1.2 times more volatile than CIMC Vehicles Co. It trades about 0.04 of its potential returns per unit of risk. CIMC Vehicles Co is currently generating about 0.02 per unit of risk. If you would invest 914.00 in Guosheng Financial Holding on October 29, 2024 and sell it today you would earn a total of 426.00 from holding Guosheng Financial Holding or generate 46.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. CIMC Vehicles Co
Performance |
| Timeline |
| Guosheng Financial |
| CIMC Vehicles |
Guosheng Financial and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and CIMC Vehicles
The main advantage of trading using opposite Guosheng Financial and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial position performs unexpectedly, CIMC Vehicles 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 CIMC Vehicles will offset losses from the drop in CIMC Vehicles' long position.| Guosheng Financial vs. Sichuan Fulin Transportation | Guosheng Financial vs. Zhengping RoadBridge Constr | Guosheng Financial vs. Xinjiang Beixin RoadBridge | Guosheng Financial vs. Dareway Software Co |
| CIMC Vehicles vs. Guocheng Mining Co | CIMC Vehicles vs. Guangzhou Haozhi Industrial | CIMC Vehicles vs. Guangdong Jingyi Metal | CIMC Vehicles vs. Chengdu Spaceon Electronics |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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