Correlation Between Gan Yuan and Great Sun
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By analyzing existing cross correlation between Gan Yuan Foods and Great Sun Foods Co, you can compare the effects of market volatilities on Gan Yuan and Great Sun 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 Great Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Great Sun.
Diversification Opportunities for Gan Yuan and Great Sun
Almost no diversification
The 3 months correlation between Gan and Great is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Great Sun Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Sun Foods 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 Great Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Sun Foods has no effect on the direction of Gan Yuan i.e., Gan Yuan and Great Sun go up and down completely randomly.
Pair Corralation between Gan Yuan and Great Sun
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 0.51 times more return on investment than Great Sun. However, Gan Yuan Foods is 1.97 times less risky than Great Sun. It trades about 0.19 of its potential returns per unit of risk. Great Sun Foods Co is currently generating about -0.04 per unit of risk. If you would invest 7,220 in Gan Yuan Foods on September 1, 2024 and sell it today you would earn a total of 638.00 from holding Gan Yuan Foods or generate 8.84% 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. Great Sun Foods Co
Performance |
| Timeline |
| Gan Yuan Foods |
| Great Sun Foods |
Gan Yuan and Great Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Great Sun
The main advantage of trading using opposite Gan Yuan and Great Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Great Sun 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 Great Sun will offset losses from the drop in Great Sun'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 |
| Great Sun vs. Nanjing Putian Telecommunications | Great Sun vs. Shenzhen Hifuture Electric | Great Sun vs. Tianjin Realty Development | Great Sun 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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