Correlation Between Guangzhou Haige and Great Sun
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By analyzing existing cross correlation between Guangzhou Haige Communications and Great Sun Foods Co, you can compare the effects of market volatilities on Guangzhou Haige 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 Guangzhou Haige with a short position of Great Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Great Sun.
Diversification Opportunities for Guangzhou Haige and Great Sun
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Great is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications 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 Guangzhou Haige 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 Guangzhou Haige Communications 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 Guangzhou Haige i.e., Guangzhou Haige and Great Sun go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Great Sun
Assuming the 90 days trading horizon Guangzhou Haige Communications is expected to generate 0.83 times more return on investment than Great Sun. However, Guangzhou Haige Communications is 1.21 times less risky than Great Sun. It trades about 0.16 of its potential returns per unit of risk. Great Sun Foods Co is currently generating about 0.08 per unit of risk. If you would invest 1,157 in Guangzhou Haige Communications on September 4, 2024 and sell it today you would earn a total of 130.00 from holding Guangzhou Haige Communications or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Great Sun Foods Co
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Great Sun Foods |
Guangzhou Haige and Great Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Great Sun
The main advantage of trading using opposite Guangzhou Haige and Great Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige 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.| Guangzhou Haige vs. Industrial and Commercial | Guangzhou Haige vs. China Construction Bank | Guangzhou Haige vs. Bank of China | Guangzhou Haige vs. Agricultural Bank of |
| Great Sun vs. Jilin Jlu Communication | Great Sun vs. State Grid InformationCommunication | Great Sun vs. Eastern Communications Co | Great Sun vs. Anhui Deli Household |
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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