Correlation Between Gan Yuan and Shenzhen Zhongzhuang
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By analyzing existing cross correlation between Gan Yuan Foods and Shenzhen Zhongzhuang Construction, you can compare the effects of market volatilities on Gan Yuan and Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Shenzhen Zhongzhuang.
Diversification Opportunities for Gan Yuan and Shenzhen Zhongzhuang
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gan and Shenzhen is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Shenzhen Zhongzhuang Construct in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Zhongzhuang has no effect on the direction of Gan Yuan i.e., Gan Yuan and Shenzhen Zhongzhuang go up and down completely randomly.
Pair Corralation between Gan Yuan and Shenzhen Zhongzhuang
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 0.68 times more return on investment than Shenzhen Zhongzhuang. However, Gan Yuan Foods is 1.47 times less risky than Shenzhen Zhongzhuang. It trades about 0.05 of its potential returns per unit of risk. Shenzhen Zhongzhuang Construction is currently generating about 0.02 per unit of risk. If you would invest 6,687 in Gan Yuan Foods on September 12, 2024 and sell it today you would earn a total of 1,506 from holding Gan Yuan Foods or generate 22.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. Shenzhen Zhongzhuang Construct
Performance |
| Timeline |
| Gan Yuan Foods |
| Shenzhen Zhongzhuang |
Gan Yuan and Shenzhen Zhongzhuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Shenzhen Zhongzhuang
The main advantage of trading using opposite Gan Yuan and Shenzhen Zhongzhuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Shenzhen Zhongzhuang 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 Shenzhen Zhongzhuang will offset losses from the drop in Shenzhen Zhongzhuang'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 |
| Shenzhen Zhongzhuang vs. Agricultural Bank of | Shenzhen Zhongzhuang vs. Industrial and Commercial | Shenzhen Zhongzhuang vs. Bank of China | Shenzhen Zhongzhuang vs. PetroChina Co Ltd |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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