Correlation Between Gan Yuan and Zhejiang Kingland
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By analyzing existing cross correlation between Gan Yuan Foods and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on Gan Yuan and Zhejiang Kingland 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 Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Zhejiang Kingland.
Diversification Opportunities for Gan Yuan and Zhejiang Kingland
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gan and Zhejiang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland 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 Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of Gan Yuan i.e., Gan Yuan and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between Gan Yuan and Zhejiang Kingland
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 1.58 times more return on investment than Zhejiang Kingland. However, Gan Yuan is 1.58 times more volatile than Zhejiang Kingland Pipeline. It trades about 0.18 of its potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about 0.1 per unit of risk. If you would invest 7,251 in Gan Yuan Foods on August 31, 2024 and sell it today you would earn a total of 638.00 from holding Gan Yuan Foods or generate 8.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gan Yuan Foods vs. Zhejiang Kingland Pipeline
Performance |
| Timeline |
| Gan Yuan Foods |
| Zhejiang Kingland |
Gan Yuan and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Zhejiang Kingland
The main advantage of trading using opposite Gan Yuan and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Zhejiang Kingland 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 Zhejiang Kingland will offset losses from the drop in Zhejiang Kingland's long position.| Gan Yuan vs. JCHX Mining Management | Gan Yuan vs. Chengdu Spaceon Electronics | Gan Yuan vs. Western Metal Materials | Gan Yuan vs. Jiaozuo Wanfang Aluminum |
| Zhejiang Kingland vs. Do Fluoride Chemicals Co | Zhejiang Kingland vs. Der International Home | Zhejiang Kingland vs. Markor International Home | Zhejiang Kingland vs. Shanghai Shuixing 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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