Correlation Between Huasi Agricultural and Gan Yuan
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By analyzing existing cross correlation between Huasi Agricultural Development and Gan Yuan Foods, you can compare the effects of market volatilities on Huasi Agricultural 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 Huasi Agricultural with a short position of Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huasi Agricultural and Gan Yuan.
Diversification Opportunities for Huasi Agricultural and Gan Yuan
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Huasi and Gan is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Huasi Agricultural Development 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 Huasi Agricultural 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 Huasi Agricultural Development 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 Huasi Agricultural i.e., Huasi Agricultural and Gan Yuan go up and down completely randomly.
Pair Corralation between Huasi Agricultural and Gan Yuan
Assuming the 90 days trading horizon Huasi Agricultural Development is expected to under-perform the Gan Yuan. In addition to that, Huasi Agricultural is 1.24 times more volatile than Gan Yuan Foods. It trades about 0.0 of its total potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.02 per unit of volatility. If you would invest 7,283 in Gan Yuan Foods on October 14, 2024 and sell it today you would earn a total of 1,146 from holding Gan Yuan Foods or generate 15.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Huasi Agricultural Development vs. Gan Yuan Foods
Performance |
| Timeline |
| Huasi Agricultural |
| Gan Yuan Foods |
Huasi Agricultural and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huasi Agricultural and Gan Yuan
The main advantage of trading using opposite Huasi Agricultural and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huasi Agricultural 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.| Huasi Agricultural vs. Iat Automobile Technology | Huasi Agricultural vs. Haima Automobile Group | Huasi Agricultural vs. Beijing Yanjing Brewery | Huasi Agricultural vs. Dongfeng Automobile Co |
| Gan Yuan vs. Zhejiang Yinlun Machinery | Gan Yuan vs. Shenzhen Zhongzhuang Construction | Gan Yuan vs. Jinsanjiang Silicon Material | Gan Yuan vs. Huasi Agricultural Development |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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