Correlation Between Jiangsu Yanghe and Great Sun
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Great Sun Foods Co, you can compare the effects of market volatilities on Jiangsu Yanghe 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 Jiangsu Yanghe with a short position of Great Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Great Sun.
Diversification Opportunities for Jiangsu Yanghe and Great Sun
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Great is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery 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 Jiangsu Yanghe 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 Jiangsu Yanghe Brewery 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 Jiangsu Yanghe i.e., Jiangsu Yanghe and Great Sun go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Great Sun
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to generate 0.39 times more return on investment than Great Sun. However, Jiangsu Yanghe Brewery is 2.56 times less risky than Great Sun. It trades about -0.04 of its potential returns per unit of risk. Great Sun Foods Co is currently generating about -0.05 per unit of risk. If you would invest 8,425 in Jiangsu Yanghe Brewery on September 26, 2024 and sell it today you would lose (101.00) from holding Jiangsu Yanghe Brewery or give up 1.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yanghe Brewery vs. Great Sun Foods Co
Performance |
| Timeline |
| Jiangsu Yanghe Brewery |
| Great Sun Foods |
Jiangsu Yanghe and Great Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yanghe and Great Sun
The main advantage of trading using opposite Jiangsu Yanghe and Great Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe 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.| Jiangsu Yanghe vs. PetroChina Co Ltd | Jiangsu Yanghe vs. China Mobile Limited | Jiangsu Yanghe vs. CNOOC Limited | Jiangsu Yanghe vs. Ping An Insurance |
| Great Sun vs. Ming Yang Smart | Great Sun vs. 159681 | Great Sun vs. 159005 | Great Sun vs. Loctek Ergonomic Technology |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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