Correlation Between Wuhan Xianglong and Guosheng Financial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wuhan Xianglong Power and Guosheng Financial Holding, you can compare the effects of market volatilities on Wuhan Xianglong 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 Wuhan Xianglong with a short position of Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Xianglong and Guosheng Financial.
Diversification Opportunities for Wuhan Xianglong and Guosheng Financial
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wuhan and Guosheng is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Xianglong Power and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial and Wuhan Xianglong 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 Wuhan Xianglong Power 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 Wuhan Xianglong i.e., Wuhan Xianglong and Guosheng Financial go up and down completely randomly.
Pair Corralation between Wuhan Xianglong and Guosheng Financial
Assuming the 90 days trading horizon Wuhan Xianglong Power is expected to generate 1.12 times more return on investment than Guosheng Financial. However, Wuhan Xianglong is 1.12 times more volatile than Guosheng Financial Holding. It trades about 0.09 of its potential returns per unit of risk. Guosheng Financial Holding is currently generating about 0.03 per unit of risk. If you would invest 688.00 in Wuhan Xianglong Power on August 29, 2024 and sell it today you would earn a total of 482.00 from holding Wuhan Xianglong Power or generate 70.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Xianglong Power vs. Guosheng Financial Holding
Performance |
| Timeline |
| Wuhan Xianglong Power |
| Guosheng Financial |
Wuhan Xianglong and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Xianglong and Guosheng Financial
The main advantage of trading using opposite Wuhan Xianglong and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Xianglong 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.| Wuhan Xianglong vs. AUPU Home Style | Wuhan Xianglong vs. Zoy Home Furnishing | Wuhan Xianglong vs. Qumei Furniture Group | Wuhan Xianglong vs. Dareway Software Co |
| Guosheng Financial vs. PetroChina Co Ltd | Guosheng Financial vs. China State Construction | Guosheng Financial vs. China Mobile Limited | 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |