Correlation Between Gan Yuan and Loongson Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gan Yuan Foods and Loongson Technology Corp, you can compare the effects of market volatilities on Gan Yuan and Loongson Technology 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 Loongson Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Loongson Technology.
Diversification Opportunities for Gan Yuan and Loongson Technology
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gan and Loongson is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Loongson Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loongson Technology Corp 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 Loongson Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loongson Technology Corp has no effect on the direction of Gan Yuan i.e., Gan Yuan and Loongson Technology go up and down completely randomly.
Pair Corralation between Gan Yuan and Loongson Technology
Assuming the 90 days trading horizon Gan Yuan is expected to generate 1.2 times less return on investment than Loongson Technology. But when comparing it to its historical volatility, Gan Yuan Foods is 1.54 times less risky than Loongson Technology. It trades about 0.02 of its potential returns per unit of risk. Loongson Technology Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 12,189 in Loongson Technology Corp on November 5, 2024 and sell it today you would lose (501.00) from holding Loongson Technology Corp or give up 4.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. Loongson Technology Corp
Performance |
| Timeline |
| Gan Yuan Foods |
| Loongson Technology Corp |
Gan Yuan and Loongson Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Loongson Technology
The main advantage of trading using opposite Gan Yuan and Loongson Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Loongson Technology 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 Loongson Technology will offset losses from the drop in Loongson Technology's long position.| Gan Yuan vs. Guangzhou Jinyi Media | Gan Yuan vs. Ningbo Ligong Online | Gan Yuan vs. CICT Mobile Communication | Gan Yuan vs. Beijing Enlight Media |
| Loongson Technology vs. Jointo Energy Investment | Loongson Technology vs. Shanghai Material Trading | Loongson Technology vs. Beijing Baolande Software | Loongson Technology vs. Hunan Investment Group |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Global Correlations Find global opportunities by holding instruments from different markets |