Correlation Between Shandong Longquan and Guosheng Financial
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By analyzing existing cross correlation between Shandong Longquan Pipeline and Guosheng Financial Holding, you can compare the effects of market volatilities on Shandong Longquan and Guosheng Financial 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 Shandong Longquan with a short position of Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Longquan and Guosheng Financial.
Diversification Opportunities for Shandong Longquan and Guosheng Financial
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shandong and Guosheng is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Longquan Pipeline and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial and Shandong Longquan 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 Shandong Longquan Pipeline are associated (or correlated) with Guosheng Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guosheng Financial has no effect on the direction of Shandong Longquan i.e., Shandong Longquan and Guosheng Financial go up and down completely randomly.
Pair Corralation between Shandong Longquan and Guosheng Financial
Assuming the 90 days trading horizon Shandong Longquan Pipeline is expected to generate 0.41 times more return on investment than Guosheng Financial. However, Shandong Longquan Pipeline is 2.46 times less risky than Guosheng Financial. It trades about 0.13 of its potential returns per unit of risk. Guosheng Financial Holding is currently generating about -0.03 per unit of risk. If you would invest 456.00 in Shandong Longquan Pipeline on October 30, 2024 and sell it today you would earn a total of 18.00 from holding Shandong Longquan Pipeline or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Longquan Pipeline vs. Guosheng Financial Holding
Performance |
| Timeline |
| Shandong Longquan |
| Guosheng Financial |
Shandong Longquan and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Longquan and Guosheng Financial
The main advantage of trading using opposite Shandong Longquan and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Longquan position performs unexpectedly, Guosheng Financial 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 Guosheng Financial will offset losses from the drop in Guosheng Financial's long position.| Shandong Longquan vs. Zijin Mining Group | Shandong Longquan vs. Wanhua Chemical Group | Shandong Longquan vs. Baoshan Iron Steel | Shandong Longquan vs. Shandong Gold Mining |
| Guosheng Financial vs. Wintao Communications Co | Guosheng Financial vs. Guangdong Jingyi Metal | Guosheng Financial vs. China Satellite Communications | Guosheng Financial vs. Pengxin International Mining |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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