Correlation Between Wonders Information and Guosheng Financial
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By analyzing existing cross correlation between Wonders Information and Guosheng Financial Holding, you can compare the effects of market volatilities on Wonders Information 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 Wonders Information with a short position of Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonders Information and Guosheng Financial.
Diversification Opportunities for Wonders Information and Guosheng Financial
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Wonders and Guosheng is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Wonders Information and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial and Wonders Information 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 Wonders Information 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 Wonders Information i.e., Wonders Information and Guosheng Financial go up and down completely randomly.
Pair Corralation between Wonders Information and Guosheng Financial
Assuming the 90 days trading horizon Wonders Information is expected to generate 1.22 times more return on investment than Guosheng Financial. However, Wonders Information is 1.22 times more volatile than Guosheng Financial Holding. It trades about 0.08 of its potential returns per unit of risk. Guosheng Financial Holding is currently generating about 0.08 per unit of risk. If you would invest 509.00 in Wonders Information on October 17, 2024 and sell it today you would earn a total of 227.00 from holding Wonders Information or generate 44.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wonders Information vs. Guosheng Financial Holding
Performance |
| Timeline |
| Wonders Information |
| Guosheng Financial |
Wonders Information and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonders Information and Guosheng Financial
The main advantage of trading using opposite Wonders Information and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonders Information 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.| Wonders Information vs. Zhongrun Resources Investment | Wonders Information vs. Kunwu Jiuding Investment | Wonders Information vs. Ningbo Ligong Online | Wonders Information vs. Vanfund Urban Investment |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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