Correlation Between 159681 and Gan Yuan
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By analyzing existing cross correlation between 159681 and Gan Yuan Foods, you can compare the effects of market volatilities on 159681 and Gan Yuan 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 159681 with a short position of Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Gan Yuan.
Diversification Opportunities for 159681 and Gan Yuan
Good diversification
The 3 months correlation between 159681 and Gan is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods and 159681 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 159681 are associated (or correlated) with Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of 159681 i.e., 159681 and Gan Yuan go up and down completely randomly.
Pair Corralation between 159681 and Gan Yuan
Assuming the 90 days trading horizon 159681 is expected to under-perform the Gan Yuan. But the etf apears to be less risky and, when comparing its historical volatility, 159681 is 2.12 times less risky than Gan Yuan. The etf trades about -0.46 of its potential returns per unit of risk. The Gan Yuan Foods is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 8,615 in Gan Yuan Foods on October 15, 2024 and sell it today you would lose (186.00) from holding Gan Yuan Foods or give up 2.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. Gan Yuan Foods
Performance |
| Timeline |
| 159681 |
| Gan Yuan Foods |
159681 and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and Gan Yuan
The main advantage of trading using opposite 159681 and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.The idea behind 159681 and Gan Yuan Foods pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Gan Yuan vs. Tongyu Communication | Gan Yuan vs. Sunwave Communications Co | Gan Yuan vs. Sichuan Hebang Biotechnology | Gan Yuan vs. Wuhan Hvsen Biotechnology |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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