Correlation Between Gan Yuan and Xiamen Goldenhome
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By analyzing existing cross correlation between Gan Yuan Foods and Xiamen Goldenhome Co, you can compare the effects of market volatilities on Gan Yuan and Xiamen Goldenhome 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 Xiamen Goldenhome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Xiamen Goldenhome.
Diversification Opportunities for Gan Yuan and Xiamen Goldenhome
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gan and Xiamen is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Xiamen Goldenhome Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Goldenhome 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 Xiamen Goldenhome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Goldenhome has no effect on the direction of Gan Yuan i.e., Gan Yuan and Xiamen Goldenhome go up and down completely randomly.
Pair Corralation between Gan Yuan and Xiamen Goldenhome
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 0.9 times more return on investment than Xiamen Goldenhome. However, Gan Yuan Foods is 1.11 times less risky than Xiamen Goldenhome. It trades about 0.03 of its potential returns per unit of risk. Xiamen Goldenhome Co is currently generating about -0.01 per unit of risk. If you would invest 6,515 in Gan Yuan Foods on September 12, 2024 and sell it today you would earn a total of 1,318 from holding Gan Yuan Foods or generate 20.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. Xiamen Goldenhome Co
Performance |
| Timeline |
| Gan Yuan Foods |
| Xiamen Goldenhome |
Gan Yuan and Xiamen Goldenhome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Xiamen Goldenhome
The main advantage of trading using opposite Gan Yuan and Xiamen Goldenhome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Xiamen Goldenhome 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 Xiamen Goldenhome will offset losses from the drop in Xiamen Goldenhome's long position.| Gan Yuan vs. Maxvision Technology Corp | Gan Yuan vs. Eastroc Beverage Group | Gan Yuan vs. Changchun Faway Automobile | Gan Yuan vs. ROPEOK Technology Group |
| Xiamen Goldenhome vs. Lutian Machinery Co | Xiamen Goldenhome vs. PetroChina Co Ltd | Xiamen Goldenhome vs. Bank of China | Xiamen Goldenhome vs. Gansu Jiu Steel |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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