Correlation Between Gan Yuan and CIMC Vehicles
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By analyzing existing cross correlation between Gan Yuan Foods and CIMC Vehicles Co, you can compare the effects of market volatilities on Gan Yuan and CIMC Vehicles 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 CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and CIMC Vehicles.
Diversification Opportunities for Gan Yuan and CIMC Vehicles
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gan and CIMC is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles 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 CIMC Vehicles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMC Vehicles has no effect on the direction of Gan Yuan i.e., Gan Yuan and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Gan Yuan and CIMC Vehicles
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 2.3 times more return on investment than CIMC Vehicles. However, Gan Yuan is 2.3 times more volatile than CIMC Vehicles Co. It trades about -0.08 of its potential returns per unit of risk. CIMC Vehicles Co is currently generating about -0.59 per unit of risk. If you would invest 8,816 in Gan Yuan Foods on October 14, 2024 and sell it today you would lose (387.00) from holding Gan Yuan Foods or give up 4.39% 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. CIMC Vehicles Co
Performance |
| Timeline |
| Gan Yuan Foods |
| CIMC Vehicles |
Gan Yuan and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and CIMC Vehicles
The main advantage of trading using opposite Gan Yuan and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, CIMC Vehicles 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 CIMC Vehicles will offset losses from the drop in CIMC Vehicles' long position.| Gan Yuan vs. Tongyu Communication | Gan Yuan vs. Sunwave Communications Co | Gan Yuan vs. Sichuan Hebang Biotechnology | Gan Yuan vs. Wuhan Hvsen Biotechnology |
| CIMC Vehicles vs. Gan Yuan Foods | CIMC Vehicles vs. Anji Foodstuff Co | CIMC Vehicles vs. Xiamen Jihong Package | CIMC Vehicles vs. Great Sun Foods Co |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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