Correlation Between Guosheng Financial and Highbroad Advanced
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By analyzing existing cross correlation between Guosheng Financial Holding and Highbroad Advanced Material, you can compare the effects of market volatilities on Guosheng Financial and Highbroad Advanced 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 Highbroad Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Highbroad Advanced.
Diversification Opportunities for Guosheng Financial and Highbroad Advanced
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guosheng and Highbroad is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and Highbroad Advanced Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highbroad Advanced 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 Highbroad Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highbroad Advanced has no effect on the direction of Guosheng Financial i.e., Guosheng Financial and Highbroad Advanced go up and down completely randomly.
Pair Corralation between Guosheng Financial and Highbroad Advanced
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to generate 1.34 times more return on investment than Highbroad Advanced. However, Guosheng Financial is 1.34 times more volatile than Highbroad Advanced Material. It trades about -0.03 of its potential returns per unit of risk. Highbroad Advanced Material is currently generating about -0.1 per unit of risk. If you would invest 1,393 in Guosheng Financial Holding on October 30, 2024 and sell it today you would lose (53.00) from holding Guosheng Financial Holding or give up 3.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. Highbroad Advanced Material
Performance |
| Timeline |
| Guosheng Financial |
| Highbroad Advanced |
Guosheng Financial and Highbroad Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Highbroad Advanced
The main advantage of trading using opposite Guosheng Financial and Highbroad Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial position performs unexpectedly, Highbroad Advanced 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 Highbroad Advanced will offset losses from the drop in Highbroad Advanced's long position.| Guosheng Financial vs. Wintao Communications Co | Guosheng Financial vs. Guangdong Jingyi Metal | Guosheng Financial vs. China Satellite Communications | Guosheng Financial vs. Pengxin International Mining |
| Highbroad Advanced vs. Chengdu Kanghua Biological | Highbroad Advanced vs. Suzhou Novoprotein Scientific | Highbroad Advanced vs. Aluminum Corp of | Highbroad Advanced vs. COL Digital Publishing |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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