Correlation Between Beijing HuaYuanYiTong and Great Sun
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By analyzing existing cross correlation between Beijing HuaYuanYiTong Thermal and Great Sun Foods Co, you can compare the effects of market volatilities on Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong with a short position of Great Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing HuaYuanYiTong and Great Sun.
Diversification Opportunities for Beijing HuaYuanYiTong and Great Sun
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Great is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Beijing HuaYuanYiTong Thermal 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 Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong Thermal 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 Beijing HuaYuanYiTong i.e., Beijing HuaYuanYiTong and Great Sun go up and down completely randomly.
Pair Corralation between Beijing HuaYuanYiTong and Great Sun
Assuming the 90 days trading horizon Beijing HuaYuanYiTong Thermal is expected to generate 1.18 times more return on investment than Great Sun. However, Beijing HuaYuanYiTong is 1.18 times more volatile than Great Sun Foods Co. It trades about 0.09 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 1,140 in Beijing HuaYuanYiTong Thermal on September 13, 2024 and sell it today you would earn a total of 59.00 from holding Beijing HuaYuanYiTong Thermal or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing HuaYuanYiTong Thermal vs. Great Sun Foods Co
Performance |
| Timeline |
| Beijing HuaYuanYiTong |
| Great Sun Foods |
Beijing HuaYuanYiTong and Great Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing HuaYuanYiTong and Great Sun
The main advantage of trading using opposite Beijing HuaYuanYiTong and Great Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing HuaYuanYiTong 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.| Beijing HuaYuanYiTong vs. Ming Yang Smart | Beijing HuaYuanYiTong vs. 159681 | Beijing HuaYuanYiTong vs. 159005 | Beijing HuaYuanYiTong vs. Loctek Ergonomic Technology |
| Great Sun vs. Nanjing Putian Telecommunications | Great Sun vs. Tianjin Realty Development | Great Sun vs. Kangyue Technology Co | Great Sun vs. Shenzhen Hifuture Electric |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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