Correlation Between Yankershop Food and Guosheng Financial
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By analyzing existing cross correlation between Yankershop Food Co and Guosheng Financial Holding, you can compare the effects of market volatilities on Yankershop Food 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 Yankershop Food with a short position of Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yankershop Food and Guosheng Financial.
Diversification Opportunities for Yankershop Food and Guosheng Financial
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yankershop and Guosheng is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Yankershop Food Co and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial and Yankershop Food 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 Yankershop Food Co 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 Yankershop Food i.e., Yankershop Food and Guosheng Financial go up and down completely randomly.
Pair Corralation between Yankershop Food and Guosheng Financial
Assuming the 90 days trading horizon Yankershop Food is expected to generate 5.26 times less return on investment than Guosheng Financial. But when comparing it to its historical volatility, Yankershop Food Co is 1.39 times less risky than Guosheng Financial. It trades about 0.01 of its potential returns per unit of risk. Guosheng Financial Holding is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 939.00 in Guosheng Financial Holding on September 2, 2024 and sell it today you would earn a total of 341.00 from holding Guosheng Financial Holding or generate 36.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yankershop Food Co vs. Guosheng Financial Holding
Performance |
| Timeline |
| Yankershop Food |
| Guosheng Financial |
Yankershop Food and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yankershop Food and Guosheng Financial
The main advantage of trading using opposite Yankershop Food and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yankershop Food 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.| Yankershop Food vs. Guangzhou Boji Medical | Yankershop Food vs. Shenzhen Kexin Communication | Yankershop Food vs. Wuhan Yangtze Communication | Yankershop Food vs. Jilin Jlu Communication |
| Guosheng Financial vs. Industrial and Commercial | Guosheng Financial vs. China Construction Bank | Guosheng Financial vs. Agricultural Bank of | Guosheng Financial vs. Bank of China |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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