Correlation Between Gan Yuan and Fiberhome Telecommunicatio
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By analyzing existing cross correlation between Gan Yuan Foods and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on Gan Yuan and Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Fiberhome Telecommunicatio.
Diversification Opportunities for Gan Yuan and Fiberhome Telecommunicatio
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gan and Fiberhome is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiberhome Telecommunicatio has no effect on the direction of Gan Yuan i.e., Gan Yuan and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between Gan Yuan and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 0.96 times more return on investment than Fiberhome Telecommunicatio. However, Gan Yuan Foods is 1.04 times less risky than Fiberhome Telecommunicatio. It trades about 0.05 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about 0.01 per unit of risk. If you would invest 6,605 in Gan Yuan Foods on September 26, 2024 and sell it today you would earn a total of 2,273 from holding Gan Yuan Foods or generate 34.41% 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. Fiberhome Telecommunication Te
Performance |
| Timeline |
| Gan Yuan Foods |
| Fiberhome Telecommunicatio |
Gan Yuan and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Fiberhome Telecommunicatio
The main advantage of trading using opposite Gan Yuan and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio will offset losses from the drop in Fiberhome Telecommunicatio's long position.| Gan Yuan vs. Ming Yang Smart | Gan Yuan vs. 159681 | Gan Yuan vs. 159005 | Gan Yuan vs. Loctek Ergonomic Technology |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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