Correlation Between Gan Yuan and Shenzhen Topway
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By analyzing existing cross correlation between Gan Yuan Foods and Shenzhen Topway Video, you can compare the effects of market volatilities on Gan Yuan and Shenzhen Topway 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 Topway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Shenzhen Topway.
Diversification Opportunities for Gan Yuan and Shenzhen Topway
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gan and Shenzhen is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Shenzhen Topway Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Topway Video 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 Topway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Topway Video has no effect on the direction of Gan Yuan i.e., Gan Yuan and Shenzhen Topway go up and down completely randomly.
Pair Corralation between Gan Yuan and Shenzhen Topway
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 0.52 times more return on investment than Shenzhen Topway. However, Gan Yuan Foods is 1.91 times less risky than Shenzhen Topway. It trades about 0.24 of its potential returns per unit of risk. Shenzhen Topway Video is currently generating about 0.1 per unit of risk. If you would invest 6,990 in Gan Yuan Foods on August 30, 2024 and sell it today you would earn a total of 899.00 from holding Gan Yuan Foods or generate 12.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. Shenzhen Topway Video
Performance |
| Timeline |
| Gan Yuan Foods |
| Shenzhen Topway Video |
Gan Yuan and Shenzhen Topway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Shenzhen Topway
The main advantage of trading using opposite Gan Yuan and Shenzhen Topway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Shenzhen Topway 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 Topway will offset losses from the drop in Shenzhen Topway's long position.| Gan Yuan vs. Cultural Investment Holdings | Gan Yuan vs. Zhejiang Construction Investment | Gan Yuan vs. Chengdu Xingrong Investment | Gan Yuan vs. China Aluminum International |
| Shenzhen Topway vs. Ming Yang Smart | Shenzhen Topway vs. 159681 | Shenzhen Topway vs. 159005 | Shenzhen Topway vs. 516220 |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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