Correlation Between Gan Yuan and Guangzhou Shangpin
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By analyzing existing cross correlation between Gan Yuan Foods and Guangzhou Shangpin Home, you can compare the effects of market volatilities on Gan Yuan and Guangzhou Shangpin 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 Guangzhou Shangpin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Guangzhou Shangpin.
Diversification Opportunities for Gan Yuan and Guangzhou Shangpin
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gan and Guangzhou is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Guangzhou Shangpin Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Shangpin Home 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 Guangzhou Shangpin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Shangpin Home has no effect on the direction of Gan Yuan i.e., Gan Yuan and Guangzhou Shangpin go up and down completely randomly.
Pair Corralation between Gan Yuan and Guangzhou Shangpin
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 0.77 times more return on investment than Guangzhou Shangpin. However, Gan Yuan Foods is 1.3 times less risky than Guangzhou Shangpin. It trades about 0.03 of its potential returns per unit of risk. Guangzhou Shangpin Home is currently generating about 0.0 per unit of risk. If you would invest 6,753 in Gan Yuan Foods on September 12, 2024 and sell it today you would earn a total of 1,080 from holding Gan Yuan Foods or generate 15.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. Guangzhou Shangpin Home
Performance |
| Timeline |
| Gan Yuan Foods |
| Guangzhou Shangpin Home |
Gan Yuan and Guangzhou Shangpin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Guangzhou Shangpin
The main advantage of trading using opposite Gan Yuan and Guangzhou Shangpin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Guangzhou Shangpin 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 Guangzhou Shangpin will offset losses from the drop in Guangzhou Shangpin'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 |
| Guangzhou Shangpin vs. Lutian Machinery Co | Guangzhou Shangpin vs. PetroChina Co Ltd | Guangzhou Shangpin vs. Bank of China | Guangzhou Shangpin vs. Gansu Jiu Steel |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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