Correlation Between Gan Yuan and Shandong Longquan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gan Yuan Foods and Shandong Longquan Pipeline, you can compare the effects of market volatilities on Gan Yuan and Shandong Longquan 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 Shandong Longquan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Shandong Longquan.
Diversification Opportunities for Gan Yuan and Shandong Longquan
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gan and Shandong is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Shandong Longquan Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Longquan 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 Shandong Longquan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Longquan has no effect on the direction of Gan Yuan i.e., Gan Yuan and Shandong Longquan go up and down completely randomly.
Pair Corralation between Gan Yuan and Shandong Longquan
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 0.88 times more return on investment than Shandong Longquan. However, Gan Yuan Foods is 1.14 times less risky than Shandong Longquan. It trades about 0.02 of its potential returns per unit of risk. Shandong Longquan Pipeline is currently generating about 0.01 per unit of risk. If you would invest 7,828 in Gan Yuan Foods on November 4, 2024 and sell it today you would earn a total of 894.00 from holding Gan Yuan Foods or generate 11.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. Shandong Longquan Pipeline
Performance |
| Timeline |
| Gan Yuan Foods |
| Shandong Longquan |
Gan Yuan and Shandong Longquan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Shandong Longquan
The main advantage of trading using opposite Gan Yuan and Shandong Longquan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Shandong Longquan 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 Shandong Longquan will offset losses from the drop in Shandong Longquan's long position.| Gan Yuan vs. Bus Online Co | Gan Yuan vs. Chengdu Xingrong Investment | Gan Yuan vs. Hunan Investment Group | Gan Yuan vs. Chison Medical Technologies |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |