Correlation Between Guosheng Financial and Shuhua Sports
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guosheng Financial Holding and Shuhua Sports Co, you can compare the effects of market volatilities on Guosheng Financial and Shuhua Sports 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 Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Shuhua Sports.
Diversification Opportunities for Guosheng Financial and Shuhua Sports
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guosheng and Shuhua is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports 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 Shuhua Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuhua Sports has no effect on the direction of Guosheng Financial i.e., Guosheng Financial and Shuhua Sports go up and down completely randomly.
Pair Corralation between Guosheng Financial and Shuhua Sports
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to under-perform the Shuhua Sports. But the stock apears to be less risky and, when comparing its historical volatility, Guosheng Financial Holding is 1.06 times less risky than Shuhua Sports. The stock trades about -0.54 of its potential returns per unit of risk. The Shuhua Sports Co is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 902.00 in Shuhua Sports Co on October 14, 2024 and sell it today you would lose (81.00) from holding Shuhua Sports Co or give up 8.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. Shuhua Sports Co
Performance |
| Timeline |
| Guosheng Financial |
| Shuhua Sports |
Guosheng Financial and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Shuhua Sports
The main advantage of trading using opposite Guosheng Financial and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial position performs unexpectedly, Shuhua Sports 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 Shuhua Sports will offset losses from the drop in Shuhua Sports' long position.| Guosheng Financial vs. BYD Co Ltd | Guosheng Financial vs. China Mobile Limited | Guosheng Financial vs. Agricultural Bank of | Guosheng Financial vs. Industrial and Commercial |
| Shuhua Sports vs. Suzhou Industrial Park | Shuhua Sports vs. Innovative Medical Management | Shuhua Sports vs. Anhui Jinhe Industrial | Shuhua Sports vs. Guangdong Jingyi Metal |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |