Correlation Between Qiaoyin Environmental and Guosheng Financial
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By analyzing existing cross correlation between Qiaoyin Environmental Tech and Guosheng Financial Holding, you can compare the effects of market volatilities on Qiaoyin Environmental 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 Qiaoyin Environmental with a short position of Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qiaoyin Environmental and Guosheng Financial.
Diversification Opportunities for Qiaoyin Environmental and Guosheng Financial
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Qiaoyin and Guosheng is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Qiaoyin Environmental Tech and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial and Qiaoyin Environmental 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 Qiaoyin Environmental Tech 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 Qiaoyin Environmental i.e., Qiaoyin Environmental and Guosheng Financial go up and down completely randomly.
Pair Corralation between Qiaoyin Environmental and Guosheng Financial
Assuming the 90 days trading horizon Qiaoyin Environmental Tech is expected to generate 0.59 times more return on investment than Guosheng Financial. However, Qiaoyin Environmental Tech is 1.69 times less risky than Guosheng Financial. It trades about -0.16 of its potential returns per unit of risk. Guosheng Financial Holding is currently generating about -0.28 per unit of risk. If you would invest 1,147 in Qiaoyin Environmental Tech on October 17, 2024 and sell it today you would lose (102.00) from holding Qiaoyin Environmental Tech or give up 8.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qiaoyin Environmental Tech vs. Guosheng Financial Holding
Performance |
| Timeline |
| Qiaoyin Environmental |
| Guosheng Financial |
Qiaoyin Environmental and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qiaoyin Environmental and Guosheng Financial
The main advantage of trading using opposite Qiaoyin Environmental and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qiaoyin Environmental 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.| Qiaoyin Environmental vs. Hefei Metalforming Mach | Qiaoyin Environmental vs. Hainan Mining Co | Qiaoyin Environmental vs. Uroica Mining Safety | Qiaoyin Environmental vs. Chenzhou Jingui Silver |
| Guosheng Financial vs. Tibet Huayu Mining | Guosheng Financial vs. Rising Nonferrous Metals | Guosheng Financial vs. Guangdong Jingyi Metal | Guosheng Financial vs. Wonders 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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