Correlation Between Jinsanjiang Silicon and Great Sun
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By analyzing existing cross correlation between Jinsanjiang Silicon Material and Great Sun Foods Co, you can compare the effects of market volatilities on Jinsanjiang Silicon and Great Sun 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 Jinsanjiang Silicon with a short position of Great Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinsanjiang Silicon and Great Sun.
Diversification Opportunities for Jinsanjiang Silicon and Great Sun
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinsanjiang and Great is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Jinsanjiang Silicon Material and Great Sun Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Sun Foods and Jinsanjiang Silicon 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 Jinsanjiang Silicon Material are associated (or correlated) with Great Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Sun Foods has no effect on the direction of Jinsanjiang Silicon i.e., Jinsanjiang Silicon and Great Sun go up and down completely randomly.
Pair Corralation between Jinsanjiang Silicon and Great Sun
Assuming the 90 days trading horizon Jinsanjiang Silicon is expected to generate 2.84 times less return on investment than Great Sun. In addition to that, Jinsanjiang Silicon is 1.03 times more volatile than Great Sun Foods Co. It trades about 0.0 of its total potential returns per unit of risk. Great Sun Foods Co is currently generating about 0.01 per unit of volatility. If you would invest 493.00 in Great Sun Foods Co on October 16, 2024 and sell it today you would lose (45.00) from holding Great Sun Foods Co or give up 9.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinsanjiang Silicon Material vs. Great Sun Foods Co
Performance |
| Timeline |
| Jinsanjiang Silicon |
| Great Sun Foods |
Jinsanjiang Silicon and Great Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinsanjiang Silicon and Great Sun
The main advantage of trading using opposite Jinsanjiang Silicon and Great Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinsanjiang Silicon position performs unexpectedly, Great Sun 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 Great Sun will offset losses from the drop in Great Sun's long position.The idea behind Jinsanjiang Silicon Material and Great Sun Foods Co 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.
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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