Correlation Between Andon Health and Great Sun
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By analyzing existing cross correlation between Andon Health Co and Great Sun Foods Co, you can compare the effects of market volatilities on Andon Health 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 Andon Health with a short position of Great Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andon Health and Great Sun.
Diversification Opportunities for Andon Health and Great Sun
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Andon and Great is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Andon Health Co 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 Andon Health 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 Andon Health Co 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 Andon Health i.e., Andon Health and Great Sun go up and down completely randomly.
Pair Corralation between Andon Health and Great Sun
Assuming the 90 days trading horizon Andon Health Co is expected to generate 0.48 times more return on investment than Great Sun. However, Andon Health Co is 2.07 times less risky than Great Sun. It trades about -0.08 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 4,388 in Andon Health Co on October 26, 2024 and sell it today you would lose (406.00) from holding Andon Health Co or give up 9.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Andon Health Co vs. Great Sun Foods Co
Performance |
| Timeline |
| Andon Health |
| Great Sun Foods |
Andon Health and Great Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Andon Health and Great Sun
The main advantage of trading using opposite Andon Health and Great Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andon Health 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.| Andon Health vs. Agricultural Bank of | Andon Health vs. Industrial and Commercial | Andon Health vs. Bank of China | Andon Health vs. China Construction Bank |
| Great Sun vs. Bank of Communications | Great Sun vs. Wuhan Yangtze Communication | Great Sun vs. Nanjing Putian Telecommunications | Great Sun vs. Wintao Communications Co |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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