Correlation Between Yili Chuanning and Guosheng Financial
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By analyzing existing cross correlation between Yili Chuanning Biotechnology and Guosheng Financial Holding, you can compare the effects of market volatilities on Yili Chuanning 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 Yili Chuanning with a short position of Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yili Chuanning and Guosheng Financial.
Diversification Opportunities for Yili Chuanning and Guosheng Financial
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Yili and Guosheng is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Yili Chuanning Biotechnology and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial and Yili Chuanning 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 Yili Chuanning Biotechnology 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 Yili Chuanning i.e., Yili Chuanning and Guosheng Financial go up and down completely randomly.
Pair Corralation between Yili Chuanning and Guosheng Financial
Assuming the 90 days trading horizon Yili Chuanning Biotechnology is expected to under-perform the Guosheng Financial. But the stock apears to be less risky and, when comparing its historical volatility, Yili Chuanning Biotechnology is 3.64 times less risky than Guosheng Financial. The stock trades about -0.37 of its potential returns per unit of risk. The Guosheng Financial Holding is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,307 in Guosheng Financial Holding on October 10, 2024 and sell it today you would lose (53.00) from holding Guosheng Financial Holding or give up 4.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yili Chuanning Biotechnology vs. Guosheng Financial Holding
Performance |
| Timeline |
| Yili Chuanning Biote |
| Guosheng Financial |
Yili Chuanning and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yili Chuanning and Guosheng Financial
The main advantage of trading using opposite Yili Chuanning and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yili Chuanning 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.| Yili Chuanning vs. Suzhou Douson Drilling | Yili Chuanning vs. Shanghai Rongtai Health | Yili Chuanning vs. Yunnan Jianzhijia Health Chain | Yili Chuanning vs. Xinya Electronic Co |
| Guosheng Financial vs. BYD Co Ltd | Guosheng Financial vs. China Mobile Limited | Guosheng Financial vs. Agricultural Bank of | Guosheng Financial vs. Industrial and Commercial |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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