Correlation Between Zoje Resources and Great Sun
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By analyzing existing cross correlation between Zoje Resources Investment and Great Sun Foods Co, you can compare the effects of market volatilities on Zoje Resources 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 Zoje Resources with a short position of Great Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Great Sun.
Diversification Opportunities for Zoje Resources and Great Sun
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zoje and Great is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment 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 Zoje Resources 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 Zoje Resources Investment 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 Zoje Resources i.e., Zoje Resources and Great Sun go up and down completely randomly.
Pair Corralation between Zoje Resources and Great Sun
Assuming the 90 days trading horizon Zoje Resources Investment is expected to generate 1.01 times more return on investment than Great Sun. However, Zoje Resources is 1.01 times more volatile than Great Sun Foods Co. It trades about 0.06 of its potential returns per unit of risk. Great Sun Foods Co is currently generating about 0.01 per unit of risk. If you would invest 119.00 in Zoje Resources Investment on October 14, 2024 and sell it today you would earn a total of 126.00 from holding Zoje Resources Investment or generate 105.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoje Resources Investment vs. Great Sun Foods Co
Performance |
| Timeline |
| Zoje Resources Investment |
| Great Sun Foods |
Zoje Resources and Great Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and Great Sun
The main advantage of trading using opposite Zoje Resources and Great Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources 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.| Zoje Resources vs. Ningbo Tip Rubber | Zoje Resources vs. HeBei Jinniu Chemical | Zoje Resources vs. Citic Guoan Wine | Zoje Resources vs. Shenyang Chemical Industry |
| Great Sun vs. Jiangsu Financial Leasing | Great Sun vs. Unisplendour Corp | Great Sun vs. Zoje Resources Investment | Great Sun vs. GRG Banking Equipment |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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