Correlation Between Gan Yuan and Sichuan Teway
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By analyzing existing cross correlation between Gan Yuan Foods and Sichuan Teway Food, you can compare the effects of market volatilities on Gan Yuan and Sichuan Teway 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 Sichuan Teway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Sichuan Teway.
Diversification Opportunities for Gan Yuan and Sichuan Teway
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gan and Sichuan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Sichuan Teway Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Teway 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 Sichuan Teway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Teway Food has no effect on the direction of Gan Yuan i.e., Gan Yuan and Sichuan Teway go up and down completely randomly.
Pair Corralation between Gan Yuan and Sichuan Teway
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 1.13 times more return on investment than Sichuan Teway. However, Gan Yuan is 1.13 times more volatile than Sichuan Teway Food. It trades about 0.02 of its potential returns per unit of risk. Sichuan Teway Food is currently generating about -0.03 per unit of risk. If you would invest 7,171 in Gan Yuan Foods on September 1, 2024 and sell it today you would earn a total of 687.00 from holding Gan Yuan Foods or generate 9.58% 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. Sichuan Teway Food
Performance |
| Timeline |
| Gan Yuan Foods |
| Sichuan Teway Food |
Gan Yuan and Sichuan Teway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Sichuan Teway
The main advantage of trading using opposite Gan Yuan and Sichuan Teway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Sichuan Teway 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 Sichuan Teway will offset losses from the drop in Sichuan Teway's long position.| Gan Yuan vs. Nanjing Putian Telecommunications | Gan Yuan vs. Shenzhen Hifuture Electric | Gan Yuan vs. Tianjin Realty Development | Gan Yuan vs. Shenyang Huitian Thermal |
| Sichuan Teway vs. Nanjing Putian Telecommunications | Sichuan Teway vs. Shenzhen Hifuture Electric | Sichuan Teway vs. Tianjin Realty Development | Sichuan Teway vs. Shenyang Huitian Thermal |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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