Correlation Between Guangdong Qunxing and Great-Sun Foods
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By analyzing existing cross correlation between Guangdong Qunxing Toys and Great Sun Foods Co, you can compare the effects of market volatilities on Guangdong Qunxing and Great-Sun Foods 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 Guangdong Qunxing with a short position of Great-Sun Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Qunxing and Great-Sun Foods.
Diversification Opportunities for Guangdong Qunxing and Great-Sun Foods
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangdong and Great-Sun is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Qunxing Toys 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 Guangdong Qunxing 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 Guangdong Qunxing Toys are associated (or correlated) with Great-Sun Foods. 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 Guangdong Qunxing i.e., Guangdong Qunxing and Great-Sun Foods go up and down completely randomly.
Pair Corralation between Guangdong Qunxing and Great-Sun Foods
Assuming the 90 days trading horizon Guangdong Qunxing Toys is expected to generate 0.98 times more return on investment than Great-Sun Foods. However, Guangdong Qunxing Toys is 1.02 times less risky than Great-Sun Foods. It trades about 0.12 of its potential returns per unit of risk. Great Sun Foods Co is currently generating about 0.1 per unit of risk. If you would invest 419.00 in Guangdong Qunxing Toys on November 3, 2024 and sell it today you would earn a total of 254.00 from holding Guangdong Qunxing Toys or generate 60.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Qunxing Toys vs. Great Sun Foods Co
Performance |
| Timeline |
| Guangdong Qunxing Toys |
| Great Sun Foods |
Guangdong Qunxing and Great-Sun Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Qunxing and Great-Sun Foods
The main advantage of trading using opposite Guangdong Qunxing and Great-Sun Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Qunxing position performs unexpectedly, Great-Sun Foods 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 Foods will offset losses from the drop in Great-Sun Foods' long position.| Guangdong Qunxing vs. China Life Insurance | Guangdong Qunxing vs. National Silicon Industry | Guangdong Qunxing vs. Shanghai OPM Biosciences | Guangdong Qunxing vs. Nanhua Bio Medicine |
| Great-Sun Foods vs. Heren Health Co | Great-Sun Foods vs. Shanghai Rongtai Health | Great-Sun Foods vs. Zhengzhou Coal Mining | Great-Sun Foods vs. Anhui Jinhe Industrial |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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