Correlation Between Guosheng Financial and Hangzhou Minsheng
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By analyzing existing cross correlation between Guosheng Financial Holding and Hangzhou Minsheng Healthcare, you can compare the effects of market volatilities on Guosheng Financial and Hangzhou Minsheng 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 Hangzhou Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Hangzhou Minsheng.
Diversification Opportunities for Guosheng Financial and Hangzhou Minsheng
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guosheng and Hangzhou is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and Hangzhou Minsheng Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Minsheng 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 Hangzhou Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Minsheng has no effect on the direction of Guosheng Financial i.e., Guosheng Financial and Hangzhou Minsheng go up and down completely randomly.
Pair Corralation between Guosheng Financial and Hangzhou Minsheng
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to generate 0.93 times more return on investment than Hangzhou Minsheng. However, Guosheng Financial Holding is 1.08 times less risky than Hangzhou Minsheng. It trades about 0.05 of its potential returns per unit of risk. Hangzhou Minsheng Healthcare is currently generating about -0.02 per unit of risk. If you would invest 930.00 in Guosheng Financial Holding on September 4, 2024 and sell it today you would earn a total of 395.00 from holding Guosheng Financial Holding or generate 42.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. Hangzhou Minsheng Healthcare
Performance |
| Timeline |
| Guosheng Financial |
| Hangzhou Minsheng |
Guosheng Financial and Hangzhou Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Hangzhou Minsheng
The main advantage of trading using opposite Guosheng Financial and Hangzhou Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial position performs unexpectedly, Hangzhou Minsheng 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 Hangzhou Minsheng will offset losses from the drop in Hangzhou Minsheng'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 |
| Hangzhou Minsheng vs. Chengdu Xingrong Investment | Hangzhou Minsheng vs. Nexchip Semiconductor Corp | Hangzhou Minsheng vs. Zoje Resources Investment | Hangzhou Minsheng vs. Guangdong Marubi Biotechnology |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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