Correlation Between Gan Yuan and Touchstone International
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By analyzing existing cross correlation between Gan Yuan Foods and Touchstone International Medical, you can compare the effects of market volatilities on Gan Yuan and Touchstone International 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 Touchstone International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Touchstone International.
Diversification Opportunities for Gan Yuan and Touchstone International
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gan and Touchstone is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Touchstone International Medic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone International 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 Touchstone International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone International has no effect on the direction of Gan Yuan i.e., Gan Yuan and Touchstone International go up and down completely randomly.
Pair Corralation between Gan Yuan and Touchstone International
Assuming the 90 days trading horizon Gan Yuan is expected to generate 1.44 times less return on investment than Touchstone International. In addition to that, Gan Yuan is 1.04 times more volatile than Touchstone International Medical. It trades about 0.07 of its total potential returns per unit of risk. Touchstone International Medical is currently generating about 0.1 per unit of volatility. If you would invest 1,452 in Touchstone International Medical on September 3, 2024 and sell it today you would earn a total of 490.00 from holding Touchstone International Medical or generate 33.75% 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. Touchstone International Medic
Performance |
| Timeline |
| Gan Yuan Foods |
| Touchstone International |
Gan Yuan and Touchstone International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Touchstone International
The main advantage of trading using opposite Gan Yuan and Touchstone International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Touchstone International 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 Touchstone International will offset losses from the drop in Touchstone International's long position.| Gan Yuan vs. Beijing Wantai Biological | Gan Yuan vs. Aluminum Corp of | Gan Yuan vs. COL Digital Publishing | Gan Yuan vs. Shaanxi Meineng Clean |
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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