Correlation Between Gansu Huangtai and Great Sun
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Great Sun Foods Co, you can compare the effects of market volatilities on Gansu Huangtai and Great Sun 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 Gansu Huangtai with a short position of Great Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Great Sun.
Diversification Opportunities for Gansu Huangtai and Great Sun
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gansu and Great is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and Great Sun Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Sun Foods and Gansu Huangtai 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 Gansu Huangtai Wine marketing are associated (or correlated) with Great Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Sun Foods has no effect on the direction of Gansu Huangtai i.e., Gansu Huangtai and Great Sun go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Great Sun
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 0.98 times more return on investment than Great Sun. However, Gansu Huangtai Wine marketing is 1.02 times less risky than Great Sun. It trades about 0.13 of its potential returns per unit of risk. Great Sun Foods Co is currently generating about -0.04 per unit of risk. If you would invest 1,377 in Gansu Huangtai Wine marketing on September 1, 2024 and sell it today you would earn a total of 153.00 from holding Gansu Huangtai Wine marketing or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Great Sun Foods Co
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Great Sun Foods |
Gansu Huangtai and Great Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Great Sun
The main advantage of trading using opposite Gansu Huangtai and Great Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai position performs unexpectedly, Great Sun 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 Great Sun will offset losses from the drop in Great Sun's long position.| Gansu Huangtai vs. Shandong Polymer Biochemicals | Gansu Huangtai vs. Ningxia Younglight Chemicals | Gansu Huangtai vs. Huatian Hotel Group | Gansu Huangtai vs. Xiandai Investment Co |
| Great Sun vs. Nanjing Putian Telecommunications | Great Sun vs. Shenzhen Hifuture Electric | Great Sun vs. Tianjin Realty Development | Great Sun vs. Shenyang Huitian Thermal |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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