Correlation Between Shaanxi Meineng and Gan Yuan
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By analyzing existing cross correlation between Shaanxi Meineng Clean and Gan Yuan Foods, you can compare the effects of market volatilities on Shaanxi Meineng 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 Shaanxi Meineng with a short position of Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Meineng and Gan Yuan.
Diversification Opportunities for Shaanxi Meineng and Gan Yuan
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shaanxi and Gan is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Meineng Clean 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 Shaanxi Meineng 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 Shaanxi Meineng Clean 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 Shaanxi Meineng i.e., Shaanxi Meineng and Gan Yuan go up and down completely randomly.
Pair Corralation between Shaanxi Meineng and Gan Yuan
Assuming the 90 days trading horizon Shaanxi Meineng Clean is expected to generate 0.88 times more return on investment than Gan Yuan. However, Shaanxi Meineng Clean is 1.14 times less risky than Gan Yuan. It trades about 0.04 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.01 per unit of risk. If you would invest 1,277 in Shaanxi Meineng Clean on September 3, 2024 and sell it today you would earn a total of 105.00 from holding Shaanxi Meineng Clean or generate 8.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Meineng Clean vs. Gan Yuan Foods
Performance |
| Timeline |
| Shaanxi Meineng Clean |
| Gan Yuan Foods |
Shaanxi Meineng and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Meineng and Gan Yuan
The main advantage of trading using opposite Shaanxi Meineng and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Meineng 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.| Shaanxi Meineng vs. Industrial and Commercial | Shaanxi Meineng vs. Agricultural Bank of | Shaanxi Meineng vs. China Construction Bank | Shaanxi Meineng vs. Bank of China |
| Gan Yuan vs. Beijing Wantai Biological | Gan Yuan vs. Aluminum Corp of | Gan Yuan vs. COL Digital Publishing | Gan Yuan vs. Shaanxi Meineng Clean |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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