Correlation Between Gan Yuan and Guangdong Sanhe
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By analyzing existing cross correlation between Gan Yuan Foods and Guangdong Sanhe Pile, you can compare the effects of market volatilities on Gan Yuan and Guangdong Sanhe 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 Sanhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Guangdong Sanhe.
Diversification Opportunities for Gan Yuan and Guangdong Sanhe
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gan and Guangdong is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Guangdong Sanhe Pile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Sanhe Pile 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 Sanhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Sanhe Pile has no effect on the direction of Gan Yuan i.e., Gan Yuan and Guangdong Sanhe go up and down completely randomly.
Pair Corralation between Gan Yuan and Guangdong Sanhe
Assuming the 90 days trading horizon Gan Yuan is expected to generate 1.13 times less return on investment than Guangdong Sanhe. But when comparing it to its historical volatility, Gan Yuan Foods is 1.4 times less risky than Guangdong Sanhe. It trades about 0.27 of its potential returns per unit of risk. Guangdong Sanhe Pile is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 645.00 in Guangdong Sanhe Pile on September 13, 2024 and sell it today you would earn a total of 90.00 from holding Guangdong Sanhe Pile or generate 13.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gan Yuan Foods vs. Guangdong Sanhe Pile
Performance |
| Timeline |
| Gan Yuan Foods |
| Guangdong Sanhe Pile |
Gan Yuan and Guangdong Sanhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Guangdong Sanhe
The main advantage of trading using opposite Gan Yuan and Guangdong Sanhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Guangdong Sanhe 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 Sanhe will offset losses from the drop in Guangdong Sanhe's long position.| Gan Yuan vs. Linewell Software Co | Gan Yuan vs. Glodon Software Co | Gan Yuan vs. Gem Year Industrial Co | Gan Yuan vs. Guangdong Jingyi Metal |
| Guangdong Sanhe vs. Zijin Mining Group | Guangdong Sanhe vs. Wanhua Chemical Group | Guangdong Sanhe vs. Baoshan Iron Steel | Guangdong Sanhe 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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