Correlation Between Jiangsu Financial and Guosheng Financial
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By analyzing existing cross correlation between Jiangsu Financial Leasing and Guosheng Financial Holding, you can compare the effects of market volatilities on Jiangsu Financial 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 Jiangsu Financial with a short position of Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Financial and Guosheng Financial.
Diversification Opportunities for Jiangsu Financial and Guosheng Financial
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jiangsu and Guosheng is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Financial Leasing and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial and Jiangsu Financial 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 Jiangsu Financial Leasing 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 Jiangsu Financial i.e., Jiangsu Financial and Guosheng Financial go up and down completely randomly.
Pair Corralation between Jiangsu Financial and Guosheng Financial
Assuming the 90 days trading horizon Jiangsu Financial Leasing is expected to under-perform the Guosheng Financial. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Financial Leasing is 2.95 times less risky than Guosheng Financial. The stock trades about -0.02 of its potential returns per unit of risk. The Guosheng Financial Holding is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,141 in Guosheng Financial Holding on October 25, 2024 and sell it today you would earn a total of 287.00 from holding Guosheng Financial Holding or generate 25.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Financial Leasing vs. Guosheng Financial Holding
Performance |
| Timeline |
| Jiangsu Financial Leasing |
| Guosheng Financial |
Jiangsu Financial and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Financial and Guosheng Financial
The main advantage of trading using opposite Jiangsu Financial and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Financial 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.| Jiangsu Financial vs. Jiangsu Jinling Sports | Jiangsu Financial vs. Kidswant Children Products | Jiangsu Financial vs. Shenzhen Zqgame | Jiangsu Financial vs. Xinjiang Baodi Mining |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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