Correlation Between Guosheng Financial and Shanghai Shuixing
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By analyzing existing cross correlation between Guosheng Financial Holding and Shanghai Shuixing Home, you can compare the effects of market volatilities on Guosheng Financial and Shanghai Shuixing 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 Shanghai Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Shanghai Shuixing.
Diversification Opportunities for Guosheng Financial and Shanghai Shuixing
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guosheng and Shanghai is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home 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 Shanghai Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of Guosheng Financial i.e., Guosheng Financial and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between Guosheng Financial and Shanghai Shuixing
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to generate 1.38 times more return on investment than Shanghai Shuixing. However, Guosheng Financial is 1.38 times more volatile than Shanghai Shuixing Home. It trades about 0.01 of its potential returns per unit of risk. Shanghai Shuixing Home is currently generating about -0.18 per unit of risk. If you would invest 1,349 in Guosheng Financial Holding on November 3, 2024 and sell it today you would lose (9.00) from holding Guosheng Financial Holding or give up 0.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. Shanghai Shuixing Home
Performance |
| Timeline |
| Guosheng Financial |
| Shanghai Shuixing Home |
Guosheng Financial and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Shanghai Shuixing
The main advantage of trading using opposite Guosheng Financial and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial position performs unexpectedly, Shanghai Shuixing 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 Shanghai Shuixing will offset losses from the drop in Shanghai Shuixing's long position.| Guosheng Financial vs. Henan Shuanghui Investment | Guosheng Financial vs. Kangping Technology Co | Guosheng Financial vs. Linewell Software Co | Guosheng Financial vs. Kuang Chi Technologies |
| Shanghai Shuixing vs. Beijing Mainstreets Investment | Shanghai Shuixing vs. Shanghai Jinfeng Wine | Shanghai Shuixing vs. Zhongrun Resources Investment | Shanghai Shuixing vs. Bingo Software Co |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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