Correlation Between Gan Yuan and Unisplendour Corp
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By analyzing existing cross correlation between Gan Yuan Foods and Unisplendour Corp, you can compare the effects of market volatilities on Gan Yuan and Unisplendour Corp 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 Unisplendour Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Unisplendour Corp.
Diversification Opportunities for Gan Yuan and Unisplendour Corp
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gan and Unisplendour is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Unisplendour Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unisplendour Corp 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 Unisplendour Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unisplendour Corp has no effect on the direction of Gan Yuan i.e., Gan Yuan and Unisplendour Corp go up and down completely randomly.
Pair Corralation between Gan Yuan and Unisplendour Corp
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 0.77 times more return on investment than Unisplendour Corp. However, Gan Yuan Foods is 1.3 times less risky than Unisplendour Corp. It trades about 0.03 of its potential returns per unit of risk. Unisplendour Corp is currently generating about 0.02 per unit of risk. If you would invest 7,283 in Gan Yuan Foods on October 21, 2024 and sell it today you would earn a total of 1,917 from holding Gan Yuan Foods or generate 26.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. Unisplendour Corp
Performance |
| Timeline |
| Gan Yuan Foods |
| Unisplendour Corp |
Gan Yuan and Unisplendour Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Unisplendour Corp
The main advantage of trading using opposite Gan Yuan and Unisplendour Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Unisplendour Corp 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 Unisplendour Corp will offset losses from the drop in Unisplendour Corp's long position.| Gan Yuan vs. Sichuan Teway Food | Gan Yuan vs. Jinhui Liquor Co | Gan Yuan vs. China Life Insurance | Gan Yuan vs. Panda Dairy Corp |
| Unisplendour Corp vs. Muyuan Foodstuff Co | Unisplendour Corp vs. Gan Yuan Foods | Unisplendour Corp vs. Guilin Seamild Foods | Unisplendour Corp vs. Jointo Energy Investment |
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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