Correlation Between North Copper and Gan Yuan
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By analyzing existing cross correlation between North Copper Shanxi and Gan Yuan Foods, you can compare the effects of market volatilities on North Copper and Gan Yuan 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 North Copper with a short position of Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Copper and Gan Yuan.
Diversification Opportunities for North Copper and Gan Yuan
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between North and Gan is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding North Copper Shanxi and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods and North Copper 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 North Copper Shanxi are associated (or correlated) with Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of North Copper i.e., North Copper and Gan Yuan go up and down completely randomly.
Pair Corralation between North Copper and Gan Yuan
Assuming the 90 days trading horizon North Copper Shanxi is expected to generate 1.39 times more return on investment than Gan Yuan. However, North Copper is 1.39 times more volatile than Gan Yuan Foods. It trades about 0.17 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.12 per unit of risk. If you would invest 816.00 in North Copper Shanxi on October 24, 2024 and sell it today you would earn a total of 107.00 from holding North Copper Shanxi or generate 13.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
North Copper Shanxi vs. Gan Yuan Foods
Performance |
| Timeline |
| North Copper Shanxi |
| Gan Yuan Foods |
North Copper and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Copper and Gan Yuan
The main advantage of trading using opposite North Copper and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Copper position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| North Copper vs. Shanghai Newtouch Software | North Copper vs. Sharetronic Data Technology | North Copper vs. Dhc Software Co | North Copper vs. Digiwin Software Co |
| Gan Yuan vs. Tonghua Grape Wine | Gan Yuan vs. Inspur Software Co | Gan Yuan vs. Citic Guoan Wine | Gan Yuan vs. Dhc Software Co |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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