Correlation Between Industrial and Guosheng Financial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Industrial and Commercial and Guosheng Financial Holding, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Guosheng Financial.
Diversification Opportunities for Industrial and Guosheng Financial
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Industrial and Guosheng is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial and Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Guosheng Financial go up and down completely randomly.
Pair Corralation between Industrial and Guosheng Financial
Assuming the 90 days trading horizon Industrial is expected to generate 1.28 times less return on investment than Guosheng Financial. But when comparing it to its historical volatility, Industrial and Commercial is 2.69 times less risky than Guosheng Financial. It trades about 0.09 of its potential returns per unit of risk. Guosheng Financial Holding is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,017 in Guosheng Financial Holding on September 1, 2024 and sell it today you would earn a total of 263.00 from holding Guosheng Financial Holding or generate 25.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Guosheng Financial Holding
Performance |
| Timeline |
| Industrial and Commercial |
| Guosheng Financial |
Industrial and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Guosheng Financial
The main advantage of trading using opposite Industrial and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. Fiberhome Telecommunication Technologies | Industrial vs. Chengdu Spaceon Electronics | Industrial vs. Zhongtong Guomai Communication | Industrial vs. Railway Signal Communication |
| Guosheng Financial vs. Industrial and Commercial | Guosheng Financial vs. China Construction Bank | Guosheng Financial vs. Agricultural Bank of | Guosheng Financial vs. Bank of China |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |