Correlation Between Guosheng Financial and Wuhan Yangtze
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By analyzing existing cross correlation between Guosheng Financial Holding and Wuhan Yangtze Communication, you can compare the effects of market volatilities on Guosheng Financial and Wuhan Yangtze 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 Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Wuhan Yangtze.
Diversification Opportunities for Guosheng Financial and Wuhan Yangtze
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guosheng and Wuhan is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun 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 Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of Guosheng Financial i.e., Guosheng Financial and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between Guosheng Financial and Wuhan Yangtze
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to generate 1.05 times more return on investment than Wuhan Yangtze. However, Guosheng Financial is 1.05 times more volatile than Wuhan Yangtze Communication. It trades about 0.1 of its potential returns per unit of risk. Wuhan Yangtze Communication is currently generating about 0.07 per unit of risk. If you would invest 851.00 in Guosheng Financial Holding on October 30, 2024 and sell it today you would earn a total of 489.00 from holding Guosheng Financial Holding or generate 57.46% 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. Wuhan Yangtze Communication
Performance |
| Timeline |
| Guosheng Financial |
| Wuhan Yangtze Commun |
Guosheng Financial and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Wuhan Yangtze
The main advantage of trading using opposite Guosheng Financial and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze'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 |
| Wuhan Yangtze vs. Bus Online Co | Wuhan Yangtze vs. Holitech Technology Co | Wuhan Yangtze vs. Gome Telecom Equipment | Wuhan Yangtze vs. Cultural Investment Holdings |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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