Correlation Between Gan Yuan and Jiamei Food
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By analyzing existing cross correlation between Gan Yuan Foods and Jiamei Food Packaging, you can compare the effects of market volatilities on Gan Yuan and Jiamei Food 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 Jiamei Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Jiamei Food.
Diversification Opportunities for Gan Yuan and Jiamei Food
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gan and Jiamei is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Jiamei Food Packaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiamei Food Packaging 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 Jiamei Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiamei Food Packaging has no effect on the direction of Gan Yuan i.e., Gan Yuan and Jiamei Food go up and down completely randomly.
Pair Corralation between Gan Yuan and Jiamei Food
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 1.13 times more return on investment than Jiamei Food. However, Gan Yuan is 1.13 times more volatile than Jiamei Food Packaging. It trades about 0.05 of its potential returns per unit of risk. Jiamei Food Packaging is currently generating about 0.04 per unit of risk. If you would invest 6,771 in Gan Yuan Foods on November 3, 2024 and sell it today you would earn a total of 1,951 from holding Gan Yuan Foods or generate 28.81% 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. Jiamei Food Packaging
Performance |
| Timeline |
| Gan Yuan Foods |
| Jiamei Food Packaging |
Gan Yuan and Jiamei Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Jiamei Food
The main advantage of trading using opposite Gan Yuan and Jiamei Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Jiamei Food 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 Jiamei Food will offset losses from the drop in Jiamei Food's long position.| Gan Yuan vs. Xinjiang Baodi Mining | Gan Yuan vs. Guangzhou Jointas Chemical | Gan Yuan vs. Ningbo Fujia Industrial | Gan Yuan vs. Shenzhen Noposion Agrochemicals |
| Jiamei Food vs. Zijin Mining Group | Jiamei Food vs. Wanhua Chemical Group | Jiamei Food vs. Baoshan Iron Steel | Jiamei Food vs. Shandong Gold Mining |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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