Correlation Between Guosheng Financial and Agricultural Bank
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By analyzing existing cross correlation between Guosheng Financial Holding and Agricultural Bank of, you can compare the effects of market volatilities on Guosheng Financial and Agricultural Bank 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 Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Agricultural Bank.
Diversification Opportunities for Guosheng Financial and Agricultural Bank
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guosheng and Agricultural is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank 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 Agricultural Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agricultural Bank has no effect on the direction of Guosheng Financial i.e., Guosheng Financial and Agricultural Bank go up and down completely randomly.
Pair Corralation between Guosheng Financial and Agricultural Bank
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to generate 2.96 times more return on investment than Agricultural Bank. However, Guosheng Financial is 2.96 times more volatile than Agricultural Bank of. It trades about 0.13 of its potential returns per unit of risk. Agricultural Bank of is currently generating about 0.12 per unit of risk. If you would invest 1,252 in Guosheng Financial Holding on November 4, 2024 and sell it today you would earn a total of 88.00 from holding Guosheng Financial Holding or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. Agricultural Bank of
Performance |
| Timeline |
| Guosheng Financial |
| Agricultural Bank |
Guosheng Financial and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Agricultural Bank
The main advantage of trading using opposite Guosheng Financial and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial position performs unexpectedly, Agricultural Bank 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 Agricultural Bank will offset losses from the drop in Agricultural Bank's long position.| Guosheng Financial vs. Gifore Agricultural Machinery | Guosheng Financial vs. Guangzhou KDT Machinery | Guosheng Financial vs. Qijing Machinery | Guosheng Financial vs. Sharetronic Data Technology |
| Agricultural Bank vs. Olympic Circuit Technology | Agricultural Bank vs. Holitech Technology Co | Agricultural Bank vs. Xiamen Bank Co | Agricultural Bank vs. Peoples Insurance 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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