Correlation Between Fujian Longzhou and Guosheng Financial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fujian Longzhou Transportation and Guosheng Financial Holding, you can compare the effects of market volatilities on Fujian Longzhou 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 Fujian Longzhou with a short position of Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Longzhou and Guosheng Financial.
Diversification Opportunities for Fujian Longzhou and Guosheng Financial
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fujian and Guosheng is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Longzhou Transportation and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial and Fujian Longzhou 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 Fujian Longzhou Transportation 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 Fujian Longzhou i.e., Fujian Longzhou and Guosheng Financial go up and down completely randomly.
Pair Corralation between Fujian Longzhou and Guosheng Financial
Assuming the 90 days trading horizon Fujian Longzhou Transportation is expected to generate 1.2 times more return on investment than Guosheng Financial. However, Fujian Longzhou is 1.2 times more volatile than Guosheng Financial Holding. It trades about 0.34 of its potential returns per unit of risk. Guosheng Financial Holding is currently generating about 0.14 per unit of risk. If you would invest 427.00 in Fujian Longzhou Transportation on September 5, 2024 and sell it today you would earn a total of 164.00 from holding Fujian Longzhou Transportation or generate 38.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Longzhou Transportation vs. Guosheng Financial Holding
Performance |
| Timeline |
| Fujian Longzhou Tran |
| Guosheng Financial |
Fujian Longzhou and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Longzhou and Guosheng Financial
The main advantage of trading using opposite Fujian Longzhou and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Longzhou 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.| Fujian Longzhou vs. Yunnan Jianzhijia Health Chain | Fujian Longzhou vs. Lotus Health Group | Fujian Longzhou vs. Everjoy Health Group | Fujian Longzhou vs. Shanghai Rongtai Health |
| Guosheng Financial vs. Xinke Material | Guosheng Financial vs. Fuda Alloy Materials | Guosheng Financial vs. Shenzhen SDG Information | Guosheng Financial vs. Yonyou Auto Information |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |