Correlation Between Guosheng Financial and Qingdao NovelBeam
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By analyzing existing cross correlation between Guosheng Financial Holding and Qingdao NovelBeam Technology, you can compare the effects of market volatilities on Guosheng Financial and Qingdao NovelBeam 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 Qingdao NovelBeam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Qingdao NovelBeam.
Diversification Opportunities for Guosheng Financial and Qingdao NovelBeam
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guosheng and Qingdao is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and Qingdao NovelBeam Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao NovelBeam 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 Qingdao NovelBeam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao NovelBeam has no effect on the direction of Guosheng Financial i.e., Guosheng Financial and Qingdao NovelBeam go up and down completely randomly.
Pair Corralation between Guosheng Financial and Qingdao NovelBeam
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to generate 1.21 times more return on investment than Qingdao NovelBeam. However, Guosheng Financial is 1.21 times more volatile than Qingdao NovelBeam Technology. It trades about -0.01 of its potential returns per unit of risk. Qingdao NovelBeam Technology is currently generating about -0.16 per unit of risk. If you would invest 1,342 in Guosheng Financial Holding on December 4, 2024 and sell it today you would lose (13.00) from holding Guosheng Financial Holding or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guosheng Financial Holding vs. Qingdao NovelBeam Technology
Performance |
| Timeline |
| Guosheng Financial |
| Qingdao NovelBeam |
Guosheng Financial and Qingdao NovelBeam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guosheng Financial and Qingdao NovelBeam
The main advantage of trading using opposite Guosheng Financial and Qingdao NovelBeam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial position performs unexpectedly, Qingdao NovelBeam 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 Qingdao NovelBeam will offset losses from the drop in Qingdao NovelBeam's long position.| Guosheng Financial vs. Jiangsu Yanghe Brewery | Guosheng Financial vs. Fsilon Furnishing and | Guosheng Financial vs. Hangzhou Zhongya Machinery | Guosheng Financial vs. Beijing Yanjing Brewery |
| Qingdao NovelBeam vs. Zhejiang Construction Investment | Qingdao NovelBeam vs. Zhe Jiang Headman | Qingdao NovelBeam vs. Tieling Newcity Investment | Qingdao NovelBeam vs. Hangzhou Zhongya Machinery |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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