Correlation Between Gan Yuan and China Railway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gan Yuan Foods and China Railway Construction, you can compare the effects of market volatilities on Gan Yuan and China Railway 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 China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and China Railway.
Diversification Opportunities for Gan Yuan and China Railway
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gan and China is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and China Railway Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Constr 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 China Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Railway Constr has no effect on the direction of Gan Yuan i.e., Gan Yuan and China Railway go up and down completely randomly.
Pair Corralation between Gan Yuan and China Railway
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 1.36 times more return on investment than China Railway. However, Gan Yuan is 1.36 times more volatile than China Railway Construction. It trades about 0.05 of its potential returns per unit of risk. China Railway Construction is currently generating about 0.06 per unit of risk. If you would invest 6,687 in Gan Yuan Foods on September 12, 2024 and sell it today you would earn a total of 1,506 from holding Gan Yuan Foods or generate 22.52% 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. China Railway Construction
Performance |
| Timeline |
| Gan Yuan Foods |
| China Railway Constr |
Gan Yuan and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and China Railway
The main advantage of trading using opposite Gan Yuan and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, China Railway 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 China Railway will offset losses from the drop in China Railway's long position.| Gan Yuan vs. Maxvision Technology Corp | Gan Yuan vs. Eastroc Beverage Group | Gan Yuan vs. Changchun Faway Automobile | Gan Yuan vs. ROPEOK Technology Group |
| China Railway vs. Agricultural Bank of | China Railway vs. Industrial and Commercial | China Railway vs. Bank of China | China Railway vs. PetroChina Co Ltd |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |