Correlation Between Epoxy Base and Guosheng Financial
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By analyzing existing cross correlation between Epoxy Base Electronic and Guosheng Financial Holding, you can compare the effects of market volatilities on Epoxy Base 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 Epoxy Base with a short position of Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epoxy Base and Guosheng Financial.
Diversification Opportunities for Epoxy Base and Guosheng Financial
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Epoxy and Guosheng is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Epoxy Base Electronic and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial and Epoxy Base 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 Epoxy Base Electronic 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 Epoxy Base i.e., Epoxy Base and Guosheng Financial go up and down completely randomly.
Pair Corralation between Epoxy Base and Guosheng Financial
Assuming the 90 days trading horizon Epoxy Base is expected to generate 2.55 times less return on investment than Guosheng Financial. In addition to that, Epoxy Base is 1.18 times more volatile than Guosheng Financial Holding. It trades about 0.12 of its total potential returns per unit of risk. Guosheng Financial Holding is currently generating about 0.38 per unit of volatility. If you would invest 1,202 in Guosheng Financial Holding on September 14, 2024 and sell it today you would earn a total of 538.00 from holding Guosheng Financial Holding or generate 44.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Epoxy Base Electronic vs. Guosheng Financial Holding
Performance |
| Timeline |
| Epoxy Base Electronic |
| Guosheng Financial |
Epoxy Base and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epoxy Base and Guosheng Financial
The main advantage of trading using opposite Epoxy Base and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epoxy Base 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.| Epoxy Base vs. Zijin Mining Group | Epoxy Base vs. Wanhua Chemical Group | Epoxy Base vs. Baoshan Iron Steel | Epoxy Base vs. Shandong Gold Mining |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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