Correlation Between Gan Yuan and Guangzhou Dongfang
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By analyzing existing cross correlation between Gan Yuan Foods and Guangzhou Dongfang Hotel, you can compare the effects of market volatilities on Gan Yuan and Guangzhou Dongfang 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 Gan Yuan with a short position of Guangzhou Dongfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Guangzhou Dongfang.
Diversification Opportunities for Gan Yuan and Guangzhou Dongfang
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gan and Guangzhou is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Guangzhou Dongfang Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Dongfang Hotel and Gan Yuan 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 Gan Yuan Foods are associated (or correlated) with Guangzhou Dongfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Dongfang Hotel has no effect on the direction of Gan Yuan i.e., Gan Yuan and Guangzhou Dongfang go up and down completely randomly.
Pair Corralation between Gan Yuan and Guangzhou Dongfang
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 1.08 times more return on investment than Guangzhou Dongfang. However, Gan Yuan is 1.08 times more volatile than Guangzhou Dongfang Hotel. It trades about 0.1 of its potential returns per unit of risk. Guangzhou Dongfang Hotel is currently generating about -0.1 per unit of risk. If you would invest 7,893 in Gan Yuan Foods on November 1, 2024 and sell it today you would earn a total of 829.00 from holding Gan Yuan Foods or generate 10.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. Guangzhou Dongfang Hotel
Performance |
| Timeline |
| Gan Yuan Foods |
| Guangzhou Dongfang Hotel |
Gan Yuan and Guangzhou Dongfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Guangzhou Dongfang
The main advantage of trading using opposite Gan Yuan and Guangzhou Dongfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Guangzhou Dongfang 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 Guangzhou Dongfang will offset losses from the drop in Guangzhou Dongfang's long position.| Gan Yuan vs. Shanghai Rongtai Health | Gan Yuan vs. PKU HealthCare Corp | Gan Yuan vs. Chongqing Brewery Co | Gan Yuan vs. Beijing Yanjing Brewery |
| Guangzhou Dongfang vs. Gan Yuan Foods | Guangzhou Dongfang vs. Xiwang Foodstuffs Co | Guangzhou Dongfang vs. China Satellite Communications | Guangzhou Dongfang vs. Guangdong Wens Foodstuff |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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