Correlation Between Gan Yuan and Zhongshan Broad
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By analyzing existing cross correlation between Gan Yuan Foods and Zhongshan Broad Ocean Motor, you can compare the effects of market volatilities on Gan Yuan and Zhongshan Broad 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 Zhongshan Broad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Zhongshan Broad.
Diversification Opportunities for Gan Yuan and Zhongshan Broad
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gan and Zhongshan is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Zhongshan Broad Ocean Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Broad Ocean 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 Zhongshan Broad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Broad Ocean has no effect on the direction of Gan Yuan i.e., Gan Yuan and Zhongshan Broad go up and down completely randomly.
Pair Corralation between Gan Yuan and Zhongshan Broad
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 1.68 times more return on investment than Zhongshan Broad. However, Gan Yuan is 1.68 times more volatile than Zhongshan Broad Ocean Motor. It trades about 0.3 of its potential returns per unit of risk. Zhongshan Broad Ocean Motor is currently generating about 0.08 per unit of risk. If you would invest 6,400 in Gan Yuan Foods on September 22, 2024 and sell it today you would earn a total of 2,471 from holding Gan Yuan Foods or generate 38.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. Zhongshan Broad Ocean Motor
Performance |
| Timeline |
| Gan Yuan Foods |
| Zhongshan Broad Ocean |
Gan Yuan and Zhongshan Broad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Zhongshan Broad
The main advantage of trading using opposite Gan Yuan and Zhongshan Broad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Zhongshan Broad 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 Zhongshan Broad will offset losses from the drop in Zhongshan Broad's long position.| Gan Yuan vs. Shandong Sinoglory Health | Gan Yuan vs. Sanbo Hospital Management | Gan Yuan vs. Beijing Jiaman Dress | Gan Yuan vs. Impulse Qingdao Health |
| Zhongshan Broad vs. Changjiang Publishing Media | Zhongshan Broad vs. Shanghai Action Education | Zhongshan Broad vs. Eastern Communications Co | Zhongshan Broad vs. Songz Automobile Air |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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