Correlation Between Yonyou Auto and Guosheng Financial
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By analyzing existing cross correlation between Yonyou Auto Information and Guosheng Financial Holding, you can compare the effects of market volatilities on Yonyou Auto 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 Yonyou Auto with a short position of Guosheng Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yonyou Auto and Guosheng Financial.
Diversification Opportunities for Yonyou Auto and Guosheng Financial
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yonyou and Guosheng is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Yonyou Auto Information and Guosheng Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guosheng Financial and Yonyou Auto 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 Yonyou Auto Information 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 Yonyou Auto i.e., Yonyou Auto and Guosheng Financial go up and down completely randomly.
Pair Corralation between Yonyou Auto and Guosheng Financial
Assuming the 90 days trading horizon Yonyou Auto is expected to generate 1.2 times less return on investment than Guosheng Financial. But when comparing it to its historical volatility, Yonyou Auto Information is 1.69 times less risky than Guosheng Financial. It trades about 0.2 of its potential returns per unit of risk. Guosheng Financial Holding is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,162 in Guosheng Financial Holding on September 5, 2024 and sell it today you would earn a total of 128.00 from holding Guosheng Financial Holding or generate 11.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yonyou Auto Information vs. Guosheng Financial Holding
Performance |
| Timeline |
| Yonyou Auto Information |
| Guosheng Financial |
Yonyou Auto and Guosheng Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yonyou Auto and Guosheng Financial
The main advantage of trading using opposite Yonyou Auto and Guosheng Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yonyou Auto 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.| Yonyou Auto vs. Liaoning Chengda Biotechnology | Yonyou Auto vs. Anhui Transport Consulting | Yonyou Auto vs. Tianshan Aluminum Group | Yonyou Auto vs. Bloomage Biotechnology Corp |
| Guosheng Financial vs. Xinke Material | Guosheng Financial vs. Fuda Alloy Materials | Guosheng Financial vs. Shenzhen SDG Information | Guosheng Financial vs. Yonyou Auto Information |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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