Correlation Between Guangzhou Jinyi and Great Sun
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By analyzing existing cross correlation between Guangzhou Jinyi Media and Great Sun Foods Co, you can compare the effects of market volatilities on Guangzhou Jinyi 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 Jinyi with a short position of Great Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jinyi and Great Sun.
Diversification Opportunities for Guangzhou Jinyi and Great Sun
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guangzhou and Great is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jinyi Media 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 Jinyi 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 Jinyi Media 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 Jinyi i.e., Guangzhou Jinyi and Great Sun go up and down completely randomly.
Pair Corralation between Guangzhou Jinyi and Great Sun
Assuming the 90 days trading horizon Guangzhou Jinyi Media is expected to generate 1.2 times more return on investment than Great Sun. However, Guangzhou Jinyi is 1.2 times more volatile than Great Sun Foods Co. It trades about 0.03 of its potential returns per unit of risk. Great Sun Foods Co is currently generating about -0.02 per unit of risk. If you would invest 764.00 in Guangzhou Jinyi Media on October 28, 2024 and sell it today you would earn a total of 13.00 from holding Guangzhou Jinyi Media or generate 1.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jinyi Media vs. Great Sun Foods Co
Performance |
| Timeline |
| Guangzhou Jinyi Media |
| Great Sun Foods |
Guangzhou Jinyi and Great Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jinyi and Great Sun
The main advantage of trading using opposite Guangzhou Jinyi and Great Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jinyi 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 Jinyi vs. Shanghai Action Education | Guangzhou Jinyi vs. Zhejiang Publishing Media | Guangzhou Jinyi vs. Quectel Wireless Solutions | Guangzhou Jinyi vs. Xiangyang Automobile Bearing |
| Great Sun vs. Kweichow Moutai Co | Great Sun vs. Contemporary Amperex Technology | Great Sun vs. G bits Network Technology | Great Sun vs. Beijing Roborock Technology |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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