Correlation Between Shenzhen Topway and Gan Yuan
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By analyzing existing cross correlation between Shenzhen Topway Video and Gan Yuan Foods, you can compare the effects of market volatilities on Shenzhen Topway 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 Shenzhen Topway with a short position of Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Topway and Gan Yuan.
Diversification Opportunities for Shenzhen Topway and Gan Yuan
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Gan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Topway Video 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 Shenzhen Topway 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 Shenzhen Topway Video 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 Shenzhen Topway i.e., Shenzhen Topway and Gan Yuan go up and down completely randomly.
Pair Corralation between Shenzhen Topway and Gan Yuan
Assuming the 90 days trading horizon Shenzhen Topway Video is expected to generate 1.55 times more return on investment than Gan Yuan. However, Shenzhen Topway is 1.55 times more volatile than Gan Yuan Foods. It trades about 0.03 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 704.00 in Shenzhen Topway Video on August 27, 2024 and sell it today you would earn a total of 218.00 from holding Shenzhen Topway Video or generate 30.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Topway Video vs. Gan Yuan Foods
Performance |
| Timeline |
| Shenzhen Topway Video |
| Gan Yuan Foods |
Shenzhen Topway and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Topway and Gan Yuan
The main advantage of trading using opposite Shenzhen Topway and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Topway 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.| Shenzhen Topway vs. Lootom Telcovideo Network | Shenzhen Topway vs. Jinhui Mining Co | Shenzhen Topway vs. Zijin Mining Group | Shenzhen Topway vs. China Life Insurance |
| Gan Yuan vs. China Petroleum Chemical | Gan Yuan vs. PetroChina Co Ltd | Gan Yuan vs. China State Construction | Gan Yuan vs. China Railway Group |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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