Correlation Between Rising Nonferrous and Guosheng Financial
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By analyzing existing cross correlation between Rising Nonferrous Metals and Guosheng Financial Holding, you can compare the effects of market volatilities on Rising Nonferrous 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 Rising Nonferrous with a short position of Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Guosheng Financial.
Diversification Opportunities for Rising Nonferrous and Guosheng Financial
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rising and Guosheng is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial and Rising Nonferrous 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 Rising Nonferrous Metals 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 Rising Nonferrous i.e., Rising Nonferrous and Guosheng Financial go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Guosheng Financial
Assuming the 90 days trading horizon Rising Nonferrous is expected to generate 2.7 times less return on investment than Guosheng Financial. But when comparing it to its historical volatility, Rising Nonferrous Metals is 1.62 times less risky than Guosheng Financial. It trades about 0.05 of its potential returns per unit of risk. Guosheng Financial Holding is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 915.00 in Guosheng Financial Holding on October 17, 2024 and sell it today you would earn a total of 398.00 from holding Guosheng Financial Holding or generate 43.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Guosheng Financial Holding
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Guosheng Financial |
Rising Nonferrous and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Guosheng Financial
The main advantage of trading using opposite Rising Nonferrous and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous 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.| Rising Nonferrous vs. Guotai Epoint Software | Rising Nonferrous vs. Citic Guoan Wine | Rising Nonferrous vs. China National Software | Rising Nonferrous vs. Hongrun Construction Group |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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