Correlation Between Gan Yuan and Zhengping RoadBridge
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By analyzing existing cross correlation between Gan Yuan Foods and Zhengping RoadBridge Constr, you can compare the effects of market volatilities on Gan Yuan and Zhengping RoadBridge 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 Zhengping RoadBridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Zhengping RoadBridge.
Diversification Opportunities for Gan Yuan and Zhengping RoadBridge
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gan and Zhengping is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Zhengping RoadBridge Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengping RoadBridge 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 Zhengping RoadBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengping RoadBridge has no effect on the direction of Gan Yuan i.e., Gan Yuan and Zhengping RoadBridge go up and down completely randomly.
Pair Corralation between Gan Yuan and Zhengping RoadBridge
Assuming the 90 days trading horizon Gan Yuan Foods is expected to under-perform the Zhengping RoadBridge. But the stock apears to be less risky and, when comparing its historical volatility, Gan Yuan Foods is 1.21 times less risky than Zhengping RoadBridge. The stock trades about -0.11 of its potential returns per unit of risk. The Zhengping RoadBridge Constr is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 361.00 in Zhengping RoadBridge Constr on November 1, 2024 and sell it today you would lose (24.00) from holding Zhengping RoadBridge Constr or give up 6.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. Zhengping RoadBridge Constr
Performance |
| Timeline |
| Gan Yuan Foods |
| Zhengping RoadBridge |
Gan Yuan and Zhengping RoadBridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Zhengping RoadBridge
The main advantage of trading using opposite Gan Yuan and Zhengping RoadBridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Zhengping RoadBridge 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 Zhengping RoadBridge will offset losses from the drop in Zhengping RoadBridge's long position.| Gan Yuan vs. Shanghai Rongtai Health | Gan Yuan vs. PKU HealthCare Corp | Gan Yuan vs. Chongqing Brewery Co | Gan Yuan vs. Beijing Yanjing Brewery |
| Zhengping RoadBridge vs. Anji Foodstuff Co | Zhengping RoadBridge vs. Gan Yuan Foods | Zhengping RoadBridge vs. Linkage Software Co | Zhengping RoadBridge vs. Ligao Foods CoLtd |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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