Correlation Between Gan Yuan and Guangdong Shenglu
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By analyzing existing cross correlation between Gan Yuan Foods and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Gan Yuan and Guangdong Shenglu 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 Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Guangdong Shenglu.
Diversification Opportunities for Gan Yuan and Guangdong Shenglu
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gan and Guangdong is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu 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 Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Gan Yuan i.e., Gan Yuan and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Gan Yuan and Guangdong Shenglu
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 0.82 times more return on investment than Guangdong Shenglu. However, Gan Yuan Foods is 1.22 times less risky than Guangdong Shenglu. It trades about 0.03 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about -0.02 per unit of risk. If you would invest 6,940 in Gan Yuan Foods on September 26, 2024 and sell it today you would earn a total of 1,938 from holding Gan Yuan Foods or generate 27.93% 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. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| Gan Yuan Foods |
| Guangdong Shenglu |
Gan Yuan and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Guangdong Shenglu
The main advantage of trading using opposite Gan Yuan and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Guangdong Shenglu 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 Guangdong Shenglu will offset losses from the drop in Guangdong Shenglu's long position.| Gan Yuan vs. Ming Yang Smart | Gan Yuan vs. 159681 | Gan Yuan vs. 159005 | Gan Yuan vs. Loctek Ergonomic Technology |
| Guangdong Shenglu vs. Dongfeng Automobile Co | Guangdong Shenglu vs. China Mobile Limited | Guangdong Shenglu vs. Railway Signal Communication | Guangdong Shenglu vs. Dareway Software Co |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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