Correlation Between Gan Yuan and V V
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By analyzing existing cross correlation between Gan Yuan Foods and V V Food, you can compare the effects of market volatilities on Gan Yuan and V V 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 V V. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and V V.
Diversification Opportunities for Gan Yuan and V V
Very weak diversification
The 3 months correlation between Gan and 600300 is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and V V Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V V Food 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 V V. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V V Food has no effect on the direction of Gan Yuan i.e., Gan Yuan and V V go up and down completely randomly.
Pair Corralation between Gan Yuan and V V
Assuming the 90 days trading horizon Gan Yuan is expected to generate 1.1 times less return on investment than V V. In addition to that, Gan Yuan is 1.11 times more volatile than V V Food. It trades about 0.05 of its total potential returns per unit of risk. V V Food is currently generating about 0.07 per unit of volatility. If you would invest 244.00 in V V Food on November 3, 2024 and sell it today you would earn a total of 85.00 from holding V V Food or generate 34.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. V V Food
Performance |
| Timeline |
| Gan Yuan Foods |
| V V Food |
Gan Yuan and V V Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and V V
The main advantage of trading using opposite Gan Yuan and V V positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, V V 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 V V will offset losses from the drop in V V's long position.| Gan Yuan vs. Xinjiang Baodi Mining | Gan Yuan vs. Guangzhou Jointas Chemical | Gan Yuan vs. Ningbo Fujia Industrial | Gan Yuan vs. Shenzhen Noposion Agrochemicals |
| V V vs. Qtone Education Group | V V vs. Advanced Technology Materials | V V vs. GRIPM Advanced Materials | V V vs. Shandong Kuntai New |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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