Correlation Between Gan Yuan and Shenzhen Noposion
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By analyzing existing cross correlation between Gan Yuan Foods and Shenzhen Noposion Agrochemicals, you can compare the effects of market volatilities on Gan Yuan and Shenzhen Noposion 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 Shenzhen Noposion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Shenzhen Noposion.
Diversification Opportunities for Gan Yuan and Shenzhen Noposion
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gan and Shenzhen is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Shenzhen Noposion Agrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Noposion 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 Shenzhen Noposion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Noposion has no effect on the direction of Gan Yuan i.e., Gan Yuan and Shenzhen Noposion go up and down completely randomly.
Pair Corralation between Gan Yuan and Shenzhen Noposion
Assuming the 90 days trading horizon Gan Yuan is expected to generate 2.64 times less return on investment than Shenzhen Noposion. But when comparing it to its historical volatility, Gan Yuan Foods is 1.05 times less risky than Shenzhen Noposion. It trades about 0.02 of its potential returns per unit of risk. Shenzhen Noposion Agrochemicals is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 619.00 in Shenzhen Noposion Agrochemicals on November 1, 2024 and sell it today you would earn a total of 368.00 from holding Shenzhen Noposion Agrochemicals or generate 59.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. Shenzhen Noposion Agrochemical
Performance |
| Timeline |
| Gan Yuan Foods |
| Shenzhen Noposion |
Gan Yuan and Shenzhen Noposion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Shenzhen Noposion
The main advantage of trading using opposite Gan Yuan and Shenzhen Noposion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Shenzhen Noposion 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 Shenzhen Noposion will offset losses from the drop in Shenzhen Noposion'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 |
| Shenzhen Noposion vs. Gan Yuan Foods | Shenzhen Noposion vs. Zhongjing Food Co | Shenzhen Noposion vs. Shanghai Shuixing Home | Shenzhen Noposion vs. Zhangjiagang Elegant Home |
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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