Correlation Between Gan Yuan and CSG Holding
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By analyzing existing cross correlation between Gan Yuan Foods and CSG Holding Co, you can compare the effects of market volatilities on Gan Yuan and CSG Holding 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 CSG Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and CSG Holding.
Diversification Opportunities for Gan Yuan and CSG Holding
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gan and CSG is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and CSG Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Holding 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 CSG Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Holding has no effect on the direction of Gan Yuan i.e., Gan Yuan and CSG Holding go up and down completely randomly.
Pair Corralation between Gan Yuan and CSG Holding
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 1.19 times more return on investment than CSG Holding. However, Gan Yuan is 1.19 times more volatile than CSG Holding Co. It trades about -0.07 of its potential returns per unit of risk. CSG Holding Co is currently generating about -0.28 per unit of risk. If you would invest 9,107 in Gan Yuan Foods on November 3, 2024 and sell it today you would lose (385.00) from holding Gan Yuan Foods or give up 4.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. CSG Holding Co
Performance |
| Timeline |
| Gan Yuan Foods |
| CSG Holding |
Gan Yuan and CSG Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and CSG Holding
The main advantage of trading using opposite Gan Yuan and CSG Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, CSG Holding 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 CSG Holding will offset losses from the drop in CSG Holding's long position.| Gan Yuan vs. China Longyuan Power | Gan Yuan vs. PetroChina Co Ltd | Gan Yuan vs. Guangxi Guiguan Electric | Gan Yuan vs. Yantai North Andre |
| CSG Holding vs. Zijin Mining Group | CSG Holding vs. Wanhua Chemical Group | CSG Holding vs. Baoshan Iron Steel | CSG Holding 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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