Correlation Between Guosheng Financial and Allmed Medical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guosheng Financial Holding and Allmed Medical Products, you can compare the effects of market volatilities on Guosheng Financial and Allmed Medical 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 Guosheng Financial with a short position of Allmed Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guosheng Financial and Allmed Medical.
Diversification Opportunities for Guosheng Financial and Allmed Medical
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guosheng and Allmed is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Guosheng Financial Holding and Allmed Medical Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allmed Medical Products and Guosheng Financial 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 Guosheng Financial Holding are associated (or correlated) with Allmed Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allmed Medical Products has no effect on the direction of Guosheng Financial i.e., Guosheng Financial and Allmed Medical go up and down completely randomly.
Pair Corralation between Guosheng Financial and Allmed Medical
Assuming the 90 days trading horizon Guosheng Financial Holding is expected to generate 1.51 times more return on investment than Allmed Medical. However, Guosheng Financial is 1.51 times more volatile than Allmed Medical Products. It trades about 0.04 of its potential returns per unit of risk. Allmed Medical Products is currently generating about -0.01 per unit of risk. If you would invest 917.00 in Guosheng Financial Holding on October 26, 2024 and sell it today you would earn a total of 497.00 from holding Guosheng Financial Holding or generate 54.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Guosheng Financial Holding vs. Allmed Medical Products
Performance |
Timeline |
Guosheng Financial |
Allmed Medical Products |
Guosheng Financial and Allmed Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guosheng Financial and Allmed Medical
The main advantage of trading using opposite Guosheng Financial and Allmed Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guosheng Financial position performs unexpectedly, Allmed Medical 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 Allmed Medical will offset losses from the drop in Allmed Medical's long position.Guosheng Financial vs. King Strong New Material | Guosheng Financial vs. Zhongrun Resources Investment | Guosheng Financial vs. Luyin Investment Group | Guosheng Financial vs. Beijing Mainstreets Investment |
Allmed Medical vs. Agricultural Bank of | Allmed Medical vs. Industrial and Commercial | Allmed Medical vs. Bank of China | Allmed Medical vs. China Construction Bank |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |