Correlation Between Gan Yuan and Shanghai Pudong
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By analyzing existing cross correlation between Gan Yuan Foods and Shanghai Pudong Development, you can compare the effects of market volatilities on Gan Yuan and Shanghai Pudong 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 Shanghai Pudong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Shanghai Pudong.
Diversification Opportunities for Gan Yuan and Shanghai Pudong
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gan and Shanghai is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Shanghai Pudong Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Pudong Deve 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 Shanghai Pudong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Pudong Deve has no effect on the direction of Gan Yuan i.e., Gan Yuan and Shanghai Pudong go up and down completely randomly.
Pair Corralation between Gan Yuan and Shanghai Pudong
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 1.62 times more return on investment than Shanghai Pudong. However, Gan Yuan is 1.62 times more volatile than Shanghai Pudong Development. It trades about 0.32 of its potential returns per unit of risk. Shanghai Pudong Development is currently generating about 0.07 per unit of risk. If you would invest 7,366 in Gan Yuan Foods on September 14, 2024 and sell it today you would earn a total of 1,144 from holding Gan Yuan Foods or generate 15.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. Shanghai Pudong Development
Performance |
| Timeline |
| Gan Yuan Foods |
| Shanghai Pudong Deve |
Gan Yuan and Shanghai Pudong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Shanghai Pudong
The main advantage of trading using opposite Gan Yuan and Shanghai Pudong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Shanghai Pudong 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 Shanghai Pudong will offset losses from the drop in Shanghai Pudong's long position.| Gan Yuan vs. Jilin Jlu Communication | Gan Yuan vs. Sunwave Communications Co | Gan Yuan vs. Guocheng Mining Co | Gan Yuan vs. Allwin Telecommunication Co |
| Shanghai Pudong vs. Qingdao Foods Co | Shanghai Pudong vs. Guangdong Wens Foodstuff | Shanghai Pudong vs. Beijing Sanyuan Foods | Shanghai Pudong 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 Stocks Directory module to find actively traded stocks across global markets.
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