Correlation Between Xinya Electronic and Guosheng Financial
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By analyzing existing cross correlation between Xinya Electronic Co and Guosheng Financial Holding, you can compare the effects of market volatilities on Xinya Electronic 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 Xinya Electronic with a short position of Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinya Electronic and Guosheng Financial.
Diversification Opportunities for Xinya Electronic and Guosheng Financial
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinya and Guosheng is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Xinya Electronic 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 Xinya Electronic 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 Xinya Electronic 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 Xinya Electronic i.e., Xinya Electronic and Guosheng Financial go up and down completely randomly.
Pair Corralation between Xinya Electronic and Guosheng Financial
Assuming the 90 days trading horizon Xinya Electronic is expected to generate 5.67 times less return on investment than Guosheng Financial. But when comparing it to its historical volatility, Xinya Electronic Co is 1.92 times less risky than Guosheng Financial. It trades about 0.13 of its potential returns per unit of risk. Guosheng Financial Holding is currently generating about 0.38 of returns per unit of risk over similar time horizon. 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinya Electronic Co vs. Guosheng Financial Holding
Performance |
| Timeline |
| Xinya Electronic |
| Guosheng Financial |
Xinya Electronic and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinya Electronic and Guosheng Financial
The main advantage of trading using opposite Xinya Electronic and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinya Electronic 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.| Xinya Electronic vs. Industrial and Commercial | Xinya Electronic vs. Agricultural Bank of | Xinya Electronic vs. China Construction Bank | Xinya Electronic vs. Bank of China |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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