Correlation Between Gan Yuan and Fujian Wanchen
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By analyzing existing cross correlation between Gan Yuan Foods and Fujian Wanchen Biotechnology, you can compare the effects of market volatilities on Gan Yuan and Fujian Wanchen 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 Fujian Wanchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Fujian Wanchen.
Diversification Opportunities for Gan Yuan and Fujian Wanchen
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gan and Fujian is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Fujian Wanchen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Wanchen Biote 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 Fujian Wanchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Wanchen Biote has no effect on the direction of Gan Yuan i.e., Gan Yuan and Fujian Wanchen go up and down completely randomly.
Pair Corralation between Gan Yuan and Fujian Wanchen
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 0.92 times more return on investment than Fujian Wanchen. However, Gan Yuan Foods is 1.08 times less risky than Fujian Wanchen. It trades about 0.09 of its potential returns per unit of risk. Fujian Wanchen Biotechnology is currently generating about -0.06 per unit of risk. If you would invest 8,193 in Gan Yuan Foods on October 12, 2024 and sell it today you would earn a total of 366.00 from holding Gan Yuan Foods or generate 4.47% 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. Fujian Wanchen Biotechnology
Performance |
| Timeline |
| Gan Yuan Foods |
| Fujian Wanchen Biote |
Gan Yuan and Fujian Wanchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Fujian Wanchen
The main advantage of trading using opposite Gan Yuan and Fujian Wanchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Fujian Wanchen 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 Fujian Wanchen will offset losses from the drop in Fujian Wanchen's long position.| Gan Yuan vs. Juneyao Airlines | Gan Yuan vs. Jointo Energy Investment | Gan Yuan vs. Citic Guoan Wine | Gan Yuan vs. Tongyu Communication |
| Fujian Wanchen vs. Xiwang Foodstuffs Co | Fujian Wanchen vs. HaiXin Foods Co | Fujian Wanchen vs. Eastroc Beverage Group | Fujian Wanchen vs. Gan Yuan Foods |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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