Correlation Between Gan Yuan and Marssenger Kitchenware
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By analyzing existing cross correlation between Gan Yuan Foods and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Gan Yuan and Marssenger Kitchenware 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 Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Marssenger Kitchenware.
Diversification Opportunities for Gan Yuan and Marssenger Kitchenware
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gan and Marssenger is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware 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 Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Gan Yuan i.e., Gan Yuan and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Gan Yuan and Marssenger Kitchenware
Assuming the 90 days trading horizon Gan Yuan is expected to generate 1.33 times less return on investment than Marssenger Kitchenware. But when comparing it to its historical volatility, Gan Yuan Foods is 1.55 times less risky than Marssenger Kitchenware. It trades about 0.18 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,380 in Marssenger Kitchenware Co on August 31, 2024 and sell it today you would earn a total of 163.00 from holding Marssenger Kitchenware Co or generate 11.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gan Yuan Foods vs. Marssenger Kitchenware Co
Performance |
| Timeline |
| Gan Yuan Foods |
| Marssenger Kitchenware |
Gan Yuan and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Marssenger Kitchenware
The main advantage of trading using opposite Gan Yuan and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| Gan Yuan vs. JCHX Mining Management | Gan Yuan vs. Chengdu Spaceon Electronics | Gan Yuan vs. Western Metal Materials | Gan Yuan vs. Jiaozuo Wanfang Aluminum |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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