Correlation Between Guosheng Financial and Hainan Haiqi
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By analyzing existing cross correlation between Guosheng Financial Holding and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Guosheng Financial and Hainan Haiqi 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 Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Hainan Haiqi.
Diversification Opportunities for Guosheng Financial and Hainan Haiqi
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guosheng and Hainan is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and Hainan Haiqi Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Haiqi Transpo 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 Hainan Haiqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Haiqi Transpo has no effect on the direction of Guosheng Financial i.e., Guosheng Financial and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Guosheng Financial and Hainan Haiqi
Assuming the 90 days trading horizon Guosheng Financial is expected to generate 1.09 times less return on investment than Hainan Haiqi. In addition to that, Guosheng Financial is 1.11 times more volatile than Hainan Haiqi Transportation. It trades about 0.14 of its total potential returns per unit of risk. Hainan Haiqi Transportation is currently generating about 0.17 per unit of volatility. If you would invest 1,931 in Hainan Haiqi Transportation on September 5, 2024 and sell it today you would earn a total of 241.00 from holding Hainan Haiqi Transportation or generate 12.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Guosheng Financial |
| Hainan Haiqi Transpo |
Guosheng Financial and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Hainan Haiqi
The main advantage of trading using opposite Guosheng Financial and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial position performs unexpectedly, Hainan Haiqi 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 Hainan Haiqi will offset losses from the drop in Hainan Haiqi's long position.| Guosheng Financial vs. Xinke Material | Guosheng Financial vs. Fuda Alloy Materials | Guosheng Financial vs. Shenzhen SDG Information | Guosheng Financial vs. Yonyou Auto Information |
| Hainan Haiqi vs. Xiwang Foodstuffs Co | Hainan Haiqi vs. Ningbo Ligong Online | Hainan Haiqi vs. Pengxin International Mining | Hainan Haiqi vs. V V Food |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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