Correlation Between Cinda Securities and Guosheng Financial
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By analyzing existing cross correlation between Cinda Securities Co and Guosheng Financial Holding, you can compare the effects of market volatilities on Cinda Securities 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 Cinda Securities with a short position of Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Guosheng Financial.
Diversification Opportunities for Cinda Securities and Guosheng Financial
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cinda and Guosheng is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial and Cinda Securities 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 Cinda Securities Co 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 Cinda Securities i.e., Cinda Securities and Guosheng Financial go up and down completely randomly.
Pair Corralation between Cinda Securities and Guosheng Financial
Assuming the 90 days trading horizon Cinda Securities Co is expected to under-perform the Guosheng Financial. But the stock apears to be less risky and, when comparing its historical volatility, Cinda Securities Co is 1.26 times less risky than Guosheng Financial. The stock trades about -0.01 of its potential returns per unit of risk. The Guosheng Financial Holding is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 915.00 in Guosheng Financial Holding on September 14, 2024 and sell it today you would earn a total of 825.00 from holding Guosheng Financial Holding or generate 90.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Guosheng Financial Holding
Performance |
| Timeline |
| Cinda Securities |
| Guosheng Financial |
Cinda Securities and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Guosheng Financial
The main advantage of trading using opposite Cinda Securities and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities 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.| Cinda Securities vs. Chison Medical Technologies | Cinda Securities vs. Eastern Air Logistics | Cinda Securities vs. Hangzhou Gisway Information | Cinda Securities vs. Air China Ltd |
| Guosheng Financial vs. Leyard Optoelectronic | Guosheng Financial vs. Juneyao Airlines | Guosheng Financial vs. Xinya Electronic Co | Guosheng Financial vs. Epoxy Base Electronic |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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