Correlation Between Gan Yuan and XinJiang GuoTong
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By analyzing existing cross correlation between Gan Yuan Foods and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Gan Yuan and XinJiang GuoTong 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 XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and XinJiang GuoTong.
Diversification Opportunities for Gan Yuan and XinJiang GuoTong
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gan and XinJiang is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline 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 XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Gan Yuan i.e., Gan Yuan and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Gan Yuan and XinJiang GuoTong
Assuming the 90 days trading horizon Gan Yuan Foods is expected to under-perform the XinJiang GuoTong. In addition to that, Gan Yuan is 1.15 times more volatile than XinJiang GuoTong Pipeline. It trades about -0.04 of its total potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.06 per unit of volatility. If you would invest 801.00 in XinJiang GuoTong Pipeline on November 4, 2024 and sell it today you would earn a total of 19.00 from holding XinJiang GuoTong Pipeline or generate 2.37% 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. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Gan Yuan Foods |
| XinJiang GuoTong Pipeline |
Gan Yuan and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and XinJiang GuoTong
The main advantage of trading using opposite Gan Yuan and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Gan Yuan vs. Bus Online Co | Gan Yuan vs. Chengdu Xingrong Investment | Gan Yuan vs. Hunan Investment Group | Gan Yuan vs. Chison Medical Technologies |
| XinJiang GuoTong vs. Easyhome New Retail | XinJiang GuoTong vs. TongFu Microelectronics Co | XinJiang GuoTong vs. Bosera CMSK Industrial | XinJiang GuoTong vs. Guangdong Jingyi Metal |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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