Correlation Between Xinjiang Tianrun and Gan Yuan
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By analyzing existing cross correlation between Xinjiang Tianrun Dairy and Gan Yuan Foods, you can compare the effects of market volatilities on Xinjiang Tianrun 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 Xinjiang Tianrun with a short position of Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Tianrun and Gan Yuan.
Diversification Opportunities for Xinjiang Tianrun and Gan Yuan
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xinjiang and Gan is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Tianrun Dairy 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 Xinjiang Tianrun 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 Xinjiang Tianrun Dairy 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 Xinjiang Tianrun i.e., Xinjiang Tianrun and Gan Yuan go up and down completely randomly.
Pair Corralation between Xinjiang Tianrun and Gan Yuan
Assuming the 90 days trading horizon Xinjiang Tianrun is expected to generate 1.45 times less return on investment than Gan Yuan. But when comparing it to its historical volatility, Xinjiang Tianrun Dairy is 1.17 times less risky than Gan Yuan. It trades about 0.2 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 5,042 in Gan Yuan Foods on September 2, 2024 and sell it today you would earn a total of 2,816 from holding Gan Yuan Foods or generate 55.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Tianrun Dairy vs. Gan Yuan Foods
Performance |
| Timeline |
| Xinjiang Tianrun Dairy |
| Gan Yuan Foods |
Xinjiang Tianrun and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Tianrun and Gan Yuan
The main advantage of trading using opposite Xinjiang Tianrun and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Tianrun 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.| Xinjiang Tianrun vs. Jiangxi JDL Environmental | Xinjiang Tianrun vs. Jiugui Liquor Co | Xinjiang Tianrun vs. Guangzhou Tinci Materials | Xinjiang Tianrun vs. Tongxing Environmental Protection |
| Gan Yuan vs. Dalian Thermal Power | Gan Yuan vs. Guocheng Mining Co | Gan Yuan vs. Southern PublishingMedia Co | Gan Yuan vs. Beijing Kaiwen Education |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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