Correlation Between Gan Yuan and HeNan Splendor
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By analyzing existing cross correlation between Gan Yuan Foods and HeNan Splendor Science, you can compare the effects of market volatilities on Gan Yuan and HeNan Splendor 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 HeNan Splendor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and HeNan Splendor.
Diversification Opportunities for Gan Yuan and HeNan Splendor
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gan and HeNan is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and HeNan Splendor Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeNan Splendor Science 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 HeNan Splendor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeNan Splendor Science has no effect on the direction of Gan Yuan i.e., Gan Yuan and HeNan Splendor go up and down completely randomly.
Pair Corralation between Gan Yuan and HeNan Splendor
Assuming the 90 days trading horizon Gan Yuan is expected to generate 2.82 times less return on investment than HeNan Splendor. But when comparing it to its historical volatility, Gan Yuan Foods is 1.44 times less risky than HeNan Splendor. It trades about 0.05 of its potential returns per unit of risk. HeNan Splendor Science is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 484.00 in HeNan Splendor Science on November 3, 2024 and sell it today you would earn a total of 564.00 from holding HeNan Splendor Science or generate 116.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. HeNan Splendor Science
Performance |
| Timeline |
| Gan Yuan Foods |
| HeNan Splendor Science |
Gan Yuan and HeNan Splendor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and HeNan Splendor
The main advantage of trading using opposite Gan Yuan and HeNan Splendor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, HeNan Splendor 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 HeNan Splendor will offset losses from the drop in HeNan Splendor's long position.| Gan Yuan vs. Xinjiang Baodi Mining | Gan Yuan vs. Guangzhou Jointas Chemical | Gan Yuan vs. Ningbo Fujia Industrial | Gan Yuan vs. Shenzhen Noposion Agrochemicals |
| HeNan Splendor vs. Qiaoyin Environmental Tech | HeNan Splendor vs. Shanghai Ziyan Foods | HeNan Splendor vs. Namchow Food Group | HeNan Splendor vs. Dynagreen Environmental Protection |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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