Correlation Between Shenzhen Fortune and Guosheng Financial
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By analyzing existing cross correlation between Shenzhen Fortune Trend and Guosheng Financial Holding, you can compare the effects of market volatilities on Shenzhen Fortune 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 Shenzhen Fortune with a short position of Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Fortune and Guosheng Financial.
Diversification Opportunities for Shenzhen Fortune and Guosheng Financial
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Guosheng is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Fortune Trend and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial and Shenzhen Fortune 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 Shenzhen Fortune Trend 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 Shenzhen Fortune i.e., Shenzhen Fortune and Guosheng Financial go up and down completely randomly.
Pair Corralation between Shenzhen Fortune and Guosheng Financial
Assuming the 90 days trading horizon Shenzhen Fortune Trend is expected to generate 2.01 times more return on investment than Guosheng Financial. However, Shenzhen Fortune is 2.01 times more volatile than Guosheng Financial Holding. It trades about 0.05 of its potential returns per unit of risk. Guosheng Financial Holding is currently generating about -0.07 per unit of risk. If you would invest 15,550 in Shenzhen Fortune Trend on August 29, 2024 and sell it today you would earn a total of 431.00 from holding Shenzhen Fortune Trend or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Fortune Trend vs. Guosheng Financial Holding
Performance |
| Timeline |
| Shenzhen Fortune Trend |
| Guosheng Financial |
Shenzhen Fortune and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Fortune and Guosheng Financial
The main advantage of trading using opposite Shenzhen Fortune and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Fortune 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.| Shenzhen Fortune vs. Allwin Telecommunication Co | Shenzhen Fortune vs. Sunwave Communications Co | Shenzhen Fortune vs. Xiangyang Automobile Bearing | Shenzhen Fortune vs. Huafa Industrial Co |
| Guosheng Financial vs. PetroChina Co Ltd | Guosheng Financial vs. China State Construction | Guosheng Financial vs. China Mobile Limited | Guosheng Financial vs. Industrial and Commercial |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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