Correlation Between Gan Yuan and Suofeiya Home
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By analyzing existing cross correlation between Gan Yuan Foods and Suofeiya Home Collection, you can compare the effects of market volatilities on Gan Yuan and Suofeiya Home 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 Suofeiya Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Suofeiya Home.
Diversification Opportunities for Gan Yuan and Suofeiya Home
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gan and Suofeiya is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Suofeiya Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suofeiya Home Collection 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 Suofeiya Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suofeiya Home Collection has no effect on the direction of Gan Yuan i.e., Gan Yuan and Suofeiya Home go up and down completely randomly.
Pair Corralation between Gan Yuan and Suofeiya Home
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 0.96 times more return on investment than Suofeiya Home. However, Gan Yuan Foods is 1.04 times less risky than Suofeiya Home. It trades about 0.03 of its potential returns per unit of risk. Suofeiya Home Collection is currently generating about 0.02 per unit of risk. If you would invest 6,515 in Gan Yuan Foods on September 12, 2024 and sell it today you would earn a total of 1,318 from holding Gan Yuan Foods or generate 20.23% 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. Suofeiya Home Collection
Performance |
| Timeline |
| Gan Yuan Foods |
| Suofeiya Home Collection |
Gan Yuan and Suofeiya Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Suofeiya Home
The main advantage of trading using opposite Gan Yuan and Suofeiya Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Suofeiya Home 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 Suofeiya Home will offset losses from the drop in Suofeiya Home's long position.| Gan Yuan vs. Maxvision Technology Corp | Gan Yuan vs. Eastroc Beverage Group | Gan Yuan vs. Changchun Faway Automobile | Gan Yuan vs. ROPEOK Technology Group |
| Suofeiya Home vs. Lutian Machinery Co | Suofeiya Home vs. PetroChina Co Ltd | Suofeiya Home vs. Bank of China | Suofeiya Home vs. Gansu Jiu Steel |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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